EX-10.2 13 d479531dex102.htm EX-10.2 EX-10.2

Exhibit 10.2

TRANSITION SERVICES AND SEPARATION AGREEMENT

THIS TRANSITION SERVICES AND SEPARATION AGREEMENT (this “Agreement”), dated February 28, 2017, is made by and between Linn Operating, Inc., a Delaware corporation (“LOI”), Linn Midstream, LLC, a Delaware limited liability company (“LM”), Linn Energy, LLC, a Delaware limited liability company (“Linn Energy”), LinnCo, LLC, a Delaware limited liability company (“LC”), Linn Energy Finance Corp., a Delaware corporation (“LEF”), Linn Energy Holdings, LLC, a Delaware limited liability company (“LEH”), Linn Exploration & Production Michigan LLC, a Delaware limited liability company (“LE&PM”), Linn Exploration Midcontinent, LLC, a Delaware limited liability company (“LEM”), Linn Midwest Energy LLC, a Delaware limited liability company (“LME”), Mid-Continent I, LLC, a Delaware limited liability company (“MC-I”), Mid-Continent II, LLC, a Delaware limited liability company (“MC-II”), Mid-Continent Holdings I, LLC, a Delaware limited liability company (“MCH-I”), Mid-Continent Holdings II, LLC, a Delaware limited liability company (“MCH-II”) (LOI, LM, Linn Energy, LC, LEF, LEH, LE&PM, LEM, LME, MC-I, MC-II, MCH-I and MCH-II are referred to in this Agreement collectively as “LINN”; provided, however, that with respect to particular uses of the term in this Agreement, “LINN” shall mean each, any or all of LOI, LM, Linn Energy, LC, LEF, LEH, LE&PM, LEM, LME, MC-I, MC-II, MCH-I and MCH-II as applicable to the context of such use), and Berry Petroleum Company, LLC, a Delaware limited liability company (“Berry”). Each of LINN and Berry is referred to in this Agreement individually as a “Party,” and LINN and Berry are referred to in this Agreement collectively as the “Parties.” Capitalized terms used in this Agreement shall have the respective meanings set forth in Exhibit A.

Recitals

WHEREAS, Berry is engaged in the business of onshore oil and natural gas exploration, development, and production in the United States and owns various oil and gas properties and associated assets;

WHEREAS, on December 16, 2013, Berry completed the transactions contemplated by the merger agreement between Linn Energy, LC, and Berry pursuant to which LC acquired all of the outstanding common shares of Berry and Berry became an indirect wholly owned subsidiary of Linn Energy;

WHEREAS, all employees of Berry that were retained after completion of such transactions became employees of LOI and, along with other LINN personnel, have provided administrative, management, operating, and other services and support to Berry in accordance with an agency agreement and power of attorney;

WHEREAS, in connection with the provision of such services and support, various assets, contracts, permits, records, funds, and other rights and interests attributable or relating to Berry’s business were acquired or have been held by or in the name of LOI, and various gathering, processing, sales and similar midstream and marketing contracts related to Hydrocarbons owned by Berry have been entered into by LOI or LM;


WHEREAS, on May 11, 2016, Linn Energy and its subsidiaries (including Berry) filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas;

WHEREAS, on July 11, 2016, Berry filed a Statement of Assets and Liabilities and Schedule of Financial Affairs reflecting all of the real and personal property and other assets and interests owned by Berry as of May 11, 2016 (the “Berry Statement of Assets and Liabilities”);

WHEREAS, an Amended Joint Chapter 11 Plan of Reorganization of Linn Acquisition Company, LLC and Berry Petroleum Company, LLC (as amended, supplemented, or otherwise modified, the “Berry Consensual Plan”) was filed on December 21, 2016, and an Amended Joint Chapter 11 Plan of Reorganization of Linn Energy, LLC and its Debtor Affiliates Other Than Linn Acquisition Company, LLC and Berry Petroleum Company, LLC (as amended, supplemented, or otherwise modified, the “LINN Consensual Plan”) was filed on December 21, 2016; and

WHEREAS, the Parties are entering into this Agreement in accordance with the Berry Consensual Plan and the LINN Consensual Plan in order to set forth the terms and conditions pursuant to which (i) LINN will continue to provide, or cause to be provided, administrative, management, operating, and other services and support to Berry during a transitional period following the Effective Date and (ii) LINN and Berry will separate their previously combined enterprise and transfer all Berry Related Assets (and any other Berry Assets held in the name of LINN) to Berry under the terms and conditions specified herein.

NOW, THEREFORE, in consideration of the premises set forth in the recitals above and the covenants set forth herein and the benefits to be derived hereunder, the Parties agree as follows.

Agreement

 

1. Transition Services. LINN shall provide, or cause to be provided, to Berry the services described in this Article 1 and Exhibit B (collectively, the “Services”) during the Transition Period, and, with respect to the portion of the Services described in Sections 1.8, 1.11, 1.13, 1.14, 1.16 and 1.17 during the Accounting Period. Subject to Section 2.1, the Services shall be substantially the same as, and at the same level and manner as, those that have been provided with respect to the Berry Assets during the three month period immediately preceding the Effective Date (the “Reference Period”), and in addition shall include the provision of certain historical operating and financial data as provided herein. For the avoidance of doubt, LINN shall have the right to perform particular portions of the Services through (i) one or more of the LINN entities or (ii) to the extent previously performed by one or more Third Parties, such Third Party or Third Parties (or any other Third Parties determined by LINN to be reasonably equivalent; provided, however, that, if such other Third Parties are to perform material Third Party activities (such as drilling contractors), then such other Third Parties must be approved by Berry in advance for such portion of the Services); provided, however, that no such performance by a LINN entity or a Third Party of a portion of the Services shall

 

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  relieve LINN collectively from any liability under this Agreement with respect to such portion of the Services; provided, further, that if Berry does not approve a Third Party’s provision of Services and such failure causes LINN to be unable to provide the Services on a commercially reasonable basis, LINN will be excused from performing such Services or portion thereof without penalty until an acceptable provider is approved by Berry.

 

  1.1 Operator Services. LINN shall continue to be the operator of record for the Operated Berry Properties during the Transition Period of this Agreement. During the Transition Period, LINN shall (i) continue to perform, on Berry’s behalf, Berry’s duties as operator of the Operated Berry Properties and (ii) provide such additional operations services with respect to the Operated Berry Properties that are described in Section 1.1 of Exhibit B. For the avoidance of doubt, LINN’s obligations under this Agreement relative to accounting and disbursement of production are limited to the production of Hydrocarbons prior to the end of the Transition Period, as further described in Sections 1.1, 1.6, and 1.11 of Exhibit B.

 

  1.2 Non-Operator Services. During the Transition Period, LINN shall perform the administrative and management services with respect to the Non-Operated Berry Properties that are described in Section 1.2 of Exhibit B. LINN shall promptly provide Berry with customary details, and obtain prior written consent from Berry, for any authorizations for expenditure (“AFE”) or other proposals submitted to LINN from any Third Party operator of the Non-Operated Berry Properties (in each case, to the extent any of the foregoing are provided by such Third Party operator), it being understood that LINN will request additional detail or information regarding such AFE or other proposal on behalf of Berry if requested by Berry. If Berry fails to respond in writing 24 hours in advance of the deadline provided by a Third Party or under the applicable contract with respect to such AFE or other proposal, then LINN may respond in the ordinary course of business using its business judgment to determine the response that, in LINN’s reasonable belief based on the information available to LINN, would be in the best interest of Berry; provided, however, that LINN shall not owe, and nothing herein shall be deemed to impose, any fiduciary duties in favor of Berry. LINN shall promptly forward to Berry any AFE related to the Berry Properties that LINN receives subsequent to the end of the Transition Period.

 

  1.3 Permits. LINN shall use reasonable best efforts to maintain all Berry Permits as described in Section 1.3 of Exhibit B during the Transition Period. With respect to the Berry Permits that are held in the name of LINN and are transferable or assignable, LINN shall transfer or assign such Berry Permits to Berry on or before the end of the Transition Period, as appropriate, and Berry shall accept such transfer or assignment if required under Applicable Law; provided, however, that any costs or expenses associated with such transfer or assignment shall be the sole responsibility of, and paid entirely by, Berry in accordance with and subject to the terms and conditions of Section 5.2(A). LINN shall have no obligation to secure the required bonding, insurance, registration, or approvals to do business in a particular state or area on behalf of Berry to allow for such a Berry Permit transfer, and shall not be responsible to the extent it is not reasonably practicable to transfer or assign any Berry Permit to Berry at the end of the Transition Period or at all.

 

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  1.4 Transportation and Marketing. LINN shall provide, or cause to be provided, (i) midstream services, (ii) transportation and marketing services, (iii) gas control services, and (iv) other similar services to sell the Hydrocarbons produced from the Operated Berry Properties prior to the end of the Transition Period, as further described in Section 1.4 of Exhibit B. LINN shall maintain and administer the Berry Contracts and other contractual arrangements to sell the Hydrocarbons produced from the Berry Properties in its ordinary course of business through the end of the Transition Period. Subject to and in accordance with Section 2.10, LINN may negotiate new or replacement Berry contracts related to and as part of the Services described in this Section 1.4 on month-to-month terms; provided, however, that LINN will not provide any legal services related to such negotiation and any such contract will ultimately be executed by an authorized Berry officer or other authorized representative of Berry on behalf of Berry.

 

  1.5 Well Maintenance. With respect to the Berry Wells included in the Operated Berry Properties, during the Transition Period, LINN shall provide supervision for remedial operations and well service operations, and establish and maintain well files, as further described in Section 1.5 of Exhibit B.

 

  1.6 Payment Services. Subject to Article 5, during the Transition Period, LINN shall make payments associated with the ownership, operation, use, or maintenance of the Berry Properties as further described in Section 1.6 of Exhibit B; provided, however, that in no event will LINN be required to expend funds and other resources beyond levels projected in Berry’s 2017 capital budget as of January 1, 2017.

 

  1.7 Lease and Land Administration. During the Transition Period, LINN shall provide land, land administration, lease, and title services with respect to the Berry Properties, including those Services described in Section 1.7 of Exhibit B. For the avoidance of doubt, during the Transition Period, LINN shall provide assistance preparing any land attachment required for a mortgage filing, but the preparation of mortgages and filing of mortgages and related documents will be Berry’s responsibility.

 

  1.8 Regulatory Affairs. During the Accounting Period, but only with respect to the Hydrocarbons produced from and activities related to the Berry Properties prior to the end of the Transition Period, LINN shall provide the Services described in Section 1.8 of Exhibit B relating to regulatory requirements applicable to the Berry Properties. For the avoidance of doubt, LINN shall have no obligation to make regulatory filings required to qualify Berry as the operator of any of the Berry Properties, and such obligation shall be handled entirely by Berry prior to the end of the Transition Period. Notwithstanding anything to the contrary

 

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  contained herein, LINN shall have no responsibility for any information provided by Berry to LINN that may be included in any regulatory filing or undertaking, nor shall it be responsible to the extent of any investigation, inquiry or action taken by any Governmental Authority in relation to the Services, except to the extent resulting from or related to the gross negligence or willful misconduct of LINN.

 

  1.9 Plugging and Abandonment. As described in Section 1.9 of Exhibit B, LINN (i) shall obtain necessary non-operating working interest owner approval and regulatory permits to abandon any Berry Wells included in the Operated Berry Properties when required under Applicable Law to be abandoned during the Transition Period, (ii) shall provide supervision for abandonment operations of such Berry Wells during the Transition Period, and (iii) shall file all necessary abandonment reports after completion of such operations. For the avoidance of doubt, all proposed abandonments must be approved by Berry prior to permitting or commencement of actual abandonment operations unless such abandonments are described in Schedule 9.

 

  1.10 Environmental Compliance. If LINN discovers that any of the Berry Properties are not in compliance in all material respects with environmental, health, or safety laws, rules, or regulations during the Transition Period, then LINN shall notify Berry of such non-compliance, as described in Section 1.10 of Exhibit B. If such condition exists on an Operated Berry Property and either represents imminent danger or is required under Applicable Law to be remediated immediately, then LINN shall, unless otherwise instructed by Berry, remediate such condition at Berry’s sole cost and expense, subject to the indemnity obligations described in this Agreement. Nothing in this Agreement shall obligate LINN to undertake a review, audit, or other query relating to environmental, health, or safety laws, rules, or regulations applicable to any of the Berry Properties except to the extent set out in Section 1.10 of Exhibit B.

 

  1.11 Bookkeeping; Finance and Treasury; Accounting. During the Accounting Period, but only with respect to the Hydrocarbons produced from and activities related to the Berry Properties prior to the end of the Transition Period, LINN shall provide services for the bookkeeping, finance and treasury, and accounting functions as further described in Section 1.11 of Exhibit B. LINN shall perform services for revenue, joint interest accounting, production, and regulatory reporting functions attributable to the Berry Properties, and shall provide a statement with respect to each month (the “Monthly Statement”) reflecting the same no later than the 15th day following such month. Except as otherwise provided herein, LINN’s obligations under this Agreement relative to accounting and disbursement of production are limited to the Hydrocarbons produced from and activities related to the Berry Properties prior to the end of the Transition Period.

 

  1.12 Real Estate; Facilities. During the Transition Period, LINN shall manage all Berry Facilities and the Hill Field Offices in connection with the operation of the Berry Properties (or as otherwise related to the Services), as further described in Section 1.12 of Exhibit B. For the avoidance of doubt, LINN shall not secure new facilities or negotiate new facility leases on behalf of Berry without the prior written agreement of the Parties.

 

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  1.13 Information Technology Systems.

 

  (A) General. To the extent LINN’s information technology systems in existence as of the Effective Date and contracts with respect to such systems permit without incremental fees or other amounts payable by LINN (or with incremental fees or other amounts payable by LINN that are approved in advance by Berry as Reimbursement Expenses), LINN shall provide the information technology services described in Section 1.13 (A) Part One of Exhibit B during the Transition Period and Section 1.13(A) Part Two of Exhibit B during the Accounting Period. During the Transition Period, LINN will provide reasonable assistance to Berry in (i) identifying software licenses and IT service agreements used in connection with or attributable to the Berry Properties and (ii) determining whether such licenses or agreements are transferable or assignable; provided, however, that LINN shall not be required to negotiate or enter into new software licenses or new IT services agreements on behalf of Berry without the Parties’ prior written agreement (and at Berry’s sole cost and expense in accordance with and subject to the terms and conditions of Section 5.2(A)), and LINN shall not be required to maintain any license that would only be used in providing the Services if any such license is required to be renewed during the Transition Period and cannot be cancelled or terminated, without penalty or without reimbursement of any license fee related to an unused period lasting longer than three months after the end of the Transition Period. Berry may designate one or more LINN employees in the Bakersfield office to negotiate (subject to and in accordance with Section 2.10) assignments of existing Berry Software and new or replacement Berry software license agreements on Berry’s behalf; provided, however, that LINN will not provide any legal services related to such negotiation and any such contract will ultimately be executed by an authorized Berry officer or other authorized representative of Berry on behalf of Berry.

 

  (B) Mirrored Licenses. Subject to the confirmation that Berry is in the process of obtaining and will obtain prior to the end of the Transition Period (whether by transfer or new license) the licenses described on Exhibit E (the “Mirrored Licenses”), LINN shall provide the Services described in Section 1.13(B) of Exhibit B during the Transition Period.

 

  (C) Separation Period. To the extent LINN’s information technology systems in existence as of the Effective Date and contracts therefor permit without incremental fees or other amounts payable by LINN (or with incremental fees or other amounts payable by LINN that are approved in advance by Berry as Reimbursement Expenses), during the Separation Period, LINN

 

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  shall provide continued use of its telephonic and networking systems, which may be modified to restrict access to LINN’s network. During the Separation Period, Berry and LINN shall cooperate to allow (i) Berry to replace all network and telephonic systems related to the Berry Assets and (ii) the rerouting of networks connected to LINN’s retained hardware and also connected to Transferred Hardware, in each case, at Berry’s sole cost and expense in accordance with and subject to the terms and conditions of Section 5.2(A).

 

  (D) Existing IT Systems and Services. For the avoidance of doubt, LINN’s services will not extend to creating the design, configuration or creation of separate IT systems for Berry. Notwithstanding the language in Section 1, LINN may alter existing trust relationships between domains and servers to enable provision of the Services and, with the agreement of Berry or LINN employees designated by Berry within the Bakersfield office, may alter the manner of providing the Services described in this Section 1.13 from those provided during the Reference Period as needed to complete the transition and separation of Berry Assets as by this Agreement.

 

  1.14 Tax. As described in Section 1.14 of Exhibit B, LINN shall assist with, and maintain proper documentation for, the collection and remittance of federal, state, and local sales, use, and ad valorem taxes to the extent related to the Berry Assets during the Accounting Period, but only with respect to the Hydrocarbons produced from and activities related to the Berry Properties prior to the end of the Transition Period. In addition, LINN shall prepare and distribute 1099 forms for owners for all activity for the time period LINN is responsible for the related distributions and disbursements, and Berry shall be responsible for 1099 forms for owners for all activity effective with Berry’s assumption of administrative responsibilities of the related distributions and disbursements. Berry will prepare and file any corporate income tax filings due for Berry, even if due during the Term.

 

  1.15 Corporate Contracts. As described in Section 1.15 of Exhibit B, during the Transition Period, LINN shall perform, administer, and maintain the Berry Contracts and other contractual arrangements existing as of the Effective Date with respect to the Berry Assets (or as otherwise related to the Services). LINN will not enter into new contracts on behalf of Berry without the prior written agreement of the Parties, other than as described in Section 3.2; provided, however, that LINN may negotiate marketing agreements on behalf of Berry on a month-to-month term during the Transition Period in its ordinary course of business pursuant to and in accordance with Section 1.4 and software license agreements pursuant to and in accordance with Section 1.13(A).

 

  1.16 Records Retention. As described in Section 1.16 of Exhibit B and to the extent related to the Berry Assets or the Services, during the Accounting Period, LINN shall provide assistance in the storage and retrieval of the Berry Records and other documentation and backup information and the provision of certain historical

 

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  operating and financial data as requested by Berry. Berry shall be responsible for all costs and expenses associated with such storage and retrieval (including incremental costs and expenses incurred by LINN in providing assistance in accordance with this Section 1.16) in accordance with and subject to the terms and conditions of Section 5.2(A).

 

  1.17 Assistance with Transitioning the Services. During the Separation Period, LINN shall provide assistance with transitioning the performance of the Services from LINN to Berry as further described in Section 1.17 of Exhibit B; provided, however, that in no event shall LINN be required to perform any custom formatting with respect to any data or information utilized and to be provided by LINN in connection with this Agreement.

 

  1.18 HR; Employee Benefits; Payroll. LINN shall continue to perform administration and management of human resources, employee benefits programs, and payroll services for LINN’s employees and independent contractors, including the Services described in Section 1.18 of Exhibit B. For the avoidance of doubt, LINN will not put into place new benefit plans for Berry or perform any human resources or payroll services for Berry in its capacity as a direct employer.

 

  1.19 Registration Statement. LINN shall continue to cooperate with and provide commercially reasonable assistance to Berry in connection with the preparation and filing with the United States Securities and Exchange Commission of a Form S-1 Registration Statement under the Securities Act of 1933 with respect to the preferred and common stock or limited liability company units in Berry’s holding company (as formed on or before the Effective Date) or any Form 10-K or 10-Q under the Securities Act of 1933 required to be filed with the United States Securities and Exchange Commission during the Transition Period; provided, however, that LINN will not provide any representation letters; provided, further, that LINN disclaims any and all representations or warranties as to the accuracy of the data set forth in such S-1 Registration Statement, Form 10-K and/or Form 10-Q, and Berry hereby agrees to release and fully, indemnify, defend and hold harmless the LINN Indemnified Parties from and against any Claims related thereto or arising therefrom except any such Claims related to or arising from the gross negligence or willful misconduct of LINN.

 

  1.20 Additional Services. From time to time during the Term, Berry may request that LINN provide particular services required by Berry in addition to the Services. LINN shall provide such additional services to Berry if and to the extent that LINN is reasonably capable of providing such additional services and the Parties agree upon the service fee to be paid by Berry for such additional services.

 

  1.21 Excluded Services. For the avoidance of doubt, LINN will not be obligated to procure insurance or obtain bonds on behalf of Berry or to provide legal services to Berry (as opposed to providing internal legal support within LINN in connection with LINN’s performance of the Services).

 

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2. General.

 

  2.1 Standard of Performance; Disclaimer of Warranties. LINN shall conduct its activities under this Agreement in respect of the Services in a manner consistent with the ordinary course performance of such activities during the Reference Period, and otherwise LINN shall perform the Services for the benefit of Berry in a manner substantially consistent with the manner, quality, and timing in which LINN performs the same activities for LINN’s own benefit; provided, however, that notwithstanding anything in this Agreement to the contrary LINN shall perform its obligations under this Agreement (i) in a good and workmanlike manner, (ii) as a reasonable and prudent operator, and (iii) in accordance with Applicable Law. EXCEPT AS SET FORTH IN THE IMMEDIATELY PRECEDING SENTENCE, LINN HEREBY DISCLAIMS ANY AND ALL WARRANTIES WITH RESPECT TO THE SERVICES OR LINN’S PERFORMANCE OF THE SERVICES, INCLUDING DISCLAIMING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

 

  2.2 Notice of Accidents. LINN shall promptly provide Berry notice of any material accidents or emergencies that occur with respect to the Services or the Berry Assets.

 

  2.3 Personnel and Access.

 

  (A) Personnel. LINN shall provide personnel to staff and perform the Services, which may be accomplished to the extent necessary by (i) employees of LINN or Third Party contractors (subject to paragraph (A) of Section 5.2). All personnel engaged or directed by LINN to perform LINN’s obligations under this Agreement shall be duly qualified, licensed, trained, and experienced to perform such obligations. LINN shall at all times require such personnel to comply with Applicable Law in the same manner as a reasonable and prudent operator. Notwithstanding anything to the contrary contained herein, in no event shall LINN be required to maintain the employment of, or any contractual relationship with, any particular individual or group, or to make available to Berry any particular individual or any individual at any particular time. Berry acknowledges the transitional nature of the Services and agrees that LINN may make changes from time-to-time in the personnel performing the Services if LINN is making similar changes in performing similar services for itself.

 

  (B) Access. Berry shall have access to the Operated Berry Properties, the Berry Facilities, and the Berry Related Assets at all times during normal business hours. Should Berry desire access to Non-Operated Berry Properties during the Transition Period, LINN will use commercially reasonable efforts to coordinate access to the same with the relevant operator. LINN shall have sole authority to select, supervise, and direct all Representatives in the performance of the Services. Berry may consult

 

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  with LINN’s Representatives who are providing the Services, and LINN shall make such Representatives reasonably available to Berry for such consultations during normal business hours, either directly or through one or more designated centralized point(s) of contact, in each case subject to the applicable individual’s availability during normal business hours. In connection with Berry’s access to the Operated Berry Properties or to any Berry Related Assets located on property owned by LINN, Berry must be accompanied by a LINN Representative at all times. Berry shall indemnify, defend, and hold harmless the LINN Indemnified Parties from and against any and all liability for injury to Berry’s officers, employees, invitees, and/or agents, resulting from, or relating to, the presence of any such officers, employees, invitees, and/or agents at any Operated Berry Properties, any Non-Operated Berry Properties with respect to which LINN coordinated access for Berry, or any property owned by LINN, or from any such person’s traveling to or from such property in a vehicle owned by LINN, in each case other than any such injury and resulting liability caused by the gross negligence or willful misconduct of LINN.

 

  2.4 Consents. If any consents, approvals, or authorizations of any Person are identified as being required in connection with this Agreement, then LINN and Berry shall use commercially reasonable efforts to obtain as promptly as possible such consents, approvals, or authorizations; provided, however, that LINN shall be the primary point of contact with any such Person solely as it relates to the Services performed by LINN at that time. Berry shall be responsible for any costs and expenses incurred with Berry’s prior written approval that are attributable to obtaining any consents, approvals, or authorizations required in connection with this Agreement. If the consent, approval, or authorization of any Person, if required, is not obtained within a reasonable time period after identification thereof, then LINN and Berry shall work together to develop and effect a commercially reasonable alternative in connection with the Services affected by such failure to obtain such consent, approval, or authorization.

 

  2.5 Additional Records. Except as provided in this Agreement, nothing shall require LINN to provide records, financial information, or other information that, in each case, is not kept or reported by LINN in the ordinary course of business. For the avoidance of doubt, any reporting required of LINN during the pendency of its bankruptcy shall be deemed to be in LINN’s ordinary course of business for purposes of this Section 2.5.

 

  2.6 No Additional Systems. Nothing herein shall require LINN to install, expand, or modify any equipment, systems, or services at any location beyond the level provided by LINN during the Reference Period.

 

  2.7 Information Necessary to Perform the Services. Berry shall promptly provide any information and assistance that is reasonably requested by LINN and necessary for LINN to perform or cause to be performed any portion of the Services. If Berry fails to provide, or delays in providing, such necessary information or

 

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  assistance, then LINN shall be relieved of its obligation to perform such portion of the Services to the extent prevented thereby; provided, however, that LINN shall use commercially reasonable efforts to mitigate, overcome, or work around such failure or delay in order to perform such portion of the Services; provided, further, that Berry will reimburse LINN for any reasonable and documented additional costs or expenses incurred by LINN that are attributable to mitigating, overcoming, or working around the effects of such failure or delay in accordance with and subject to the terms and conditions of paragraph (A) of Section 5.2.

 

  2.8 Audit. At any time during the Term and during the period up to 180 days after the Final Settlement Statement is finalized under Section 5.8, Berry shall have the right to conduct one audit of the books and records of LINN insofar as they pertain to the Services, the Monthly Settlement Statements, the Monthly Statements, or the Final Settlement Statement. Such audit may be conducted by an accounting firm or other contractor retained by Berry. Berry is entitled to an adjustment of the amounts reflected in the Monthly Settlement Statements, the Monthly Statements, or the Final Settlement Statement when an error occurs. Any such audit must be completed and objections made within 60 days of its initiation. Any dispute that is not resolved between the Parties shall be resolved in accordance with the arbitration procedure set forth in Article 8.

 

  2.9 Transition Period Extension. Berry shall use its reasonable best efforts to assume operatorship of all of the Operated Berry Properties on or before the last day of the un-extended Transition Period. Berry shall provide to LINN evidence reasonably satisfactory to LINN of Berry’s satisfaction of the predicate requirements of Section 3.4 for delivery of the Change of Operator Forms no less than 14 days prior to the last day of the Transition Period, or the Transition Period will be extended for an additional calendar month (unless LINN, in its sole discretion, waives such compliance). In addition, if Berry determines that it requires all or any portion of the Services to continue beyond the end of the Transition Period, then Berry may elect to extend the Transition Period for an additional month by delivering to LINN written notice of such election no less than 15 days prior to the last day of the Transition Period; provided, however, that the Transition Period may only be extended once under this Section 2.9.

 

  2.10

General Control and Consultation. The Parties acknowledge and agree that Berry shall at all times be the owner of the Berry Assets and that LINN is providing the Services solely as a service provider. Subject to Section 2.1, and to the extent not inconsistent with Section 9.9, the Services shall be provided by LINN to the extent of and substantially in the same manner as LINN has conducted its business during the Reference Period and, in all material respects consistent with Berry’s 2017 capital budget as of January 1, 2017, under the general control of and subject to the reasonable direction of Berry; provided, however, that LINN shall control the manner and method of performing the Services, including all day-to-day Services provided for in Article 1. Without limiting the foregoing, LINN shall consult with the chief executive officer of Berry on a regular basis throughout the Term regarding the Services and shall act in accordance with the

 

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written instructions, if any, provided by such chief executive officer or his designee with respect to particular aspects of the Services. Notwithstanding anything herein to the contrary, (i) in no event shall LINN be required to act in a manner inconsistent with its health, safety and environmental policies in effect as of the Execution Date and (ii) LINN may take any action it deems necessary in its reasonable belief and in good faith to prevent or avoid imminent risk to life or property.

 

3. Berry Separation.

 

  3.1 Assets

 

  (A) Representation. LINN represents and warrants that no real or personal property was transferred from Berry to LINN at any time between December 1, 2013 and the Effective Date. To the extent either Party discovers that the foregoing is inaccurate, the Parties will take all steps necessary pursuant to Section 3.7 to transfer such real or personal property back to Berry. The foregoing is the sole and exclusive remedy with respect to any breach of the representations and warranties set forth in this paragraph (A) of Section 3.1.

 

  (B) Berry Assets. As used in this Agreement, the “Berry Assets” shall mean all real and personal properties, assets and interests that are part of the Berry Estate, including all real and personal properties, assets and interests described on the Berry Statement of Assets and Liabilities. Without limiting the foregoing, the “Berry Assets” shall include all of Berry’s right, title and interest in, to or under the following (it being expressly understood that some of the following are interests in properties in which Berry is a joint interest owner with LINN and that all references to Schedules in this Section 3.1(B) are for information purposes only and shall not expand or diminish the property of the Berry Estate or the LINN Estate, as applicable):

 

  (i) the Leasehold Interests and Mineral Interests summarized on the Berry Statement of Assets and Liabilities and as further described on Schedule 1, and Berry’s interest in the Leases and lands included in any units with which such Leasehold Interests and Mineral Interests (or the lands covered thereby) may have been pooled, unitized, or communitized (collectively, the “Berry Leasehold and Mineral Interests”);

 

  (ii) the interests in oil, gas, water, disposal, observation, or injection wells located on or traversing the Berry Leases and Mineral Interests, whether producing, non-producing, plugged, unplugged, shut-in, or temporarily abandoned, as described on Schedule 2 (collectively, the “Berry Wells”, and together with the Berry Leasehold and Mineral Interests, the “Berry Properties”);

 

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  (iii) the Hydrocarbons in storage above a custody transfer point; and

 

  (iv) the office leases, field offices, and storage yards described on the Berry Statement of Assets and Liabilities and as further described on Schedule 3 (collectively, the “Berry Facilities”).

For the avoidance of doubt, the Parties acknowledge and agree that from and after the Effective Date, Berry shall continue to be responsible for all Liabilities attributable to or arising from the Berry Assets except as otherwise provided in this Agreement and except for any such Liabilities discharged or otherwise released pursuant to or in connection with the Berry Consensual Plan or the LINN Consensual Plan.

 

  (C) Berry Related Assets. As used in this Agreement, the term “Berry Related Assets means the following real and personal properties, assets and interests, whether part of the Berry Estate or part of the LINN Estate; provided, however, that where the following relate to both Berry Assets and real or personal property that is part of the LINN Estate, only the proportion of the same related to the Berry Assets shall be included in the definition of “Berry Related Assets”:

 

  (i) The real property described on Schedule 4 (together with the field offices located thereon, the “Hill Field Offices”);

 

  (ii) all of the equipment, machinery, fixtures and other tangible personal property and improvements located on or used or held for use in connection with the ownership or operation of the Berry Properties, including tanks, boilers, plants, injection facilities, saltwater disposal facilities, compressors and other compression facilities (whether installed or not), pumping units, flow lines, pipelines, gathering systems, Hydrocarbon treating or processing systems or facilities, meters, machinery, pumps, motors, gauges, valves, power and other utility lines, roads, computer and automation equipment, SCADA and measurement technology, the Transferred Hardware, field radio telemetry and associated frequencies and licenses, pressure transmitters, central processing equipment and other appurtenances, improvements and facilities (collectively, the “Berry Equipment”);

 

  (iii) all of the pipes, casing, tubing, tubulars, fittings, and other spare parts, supplies, tools, and materials located on, used, or held for use on or held as inventory in connection with the ownership or operation of the Berry Properties, Berry Facilities, Hill Field Offices, or Berry Equipment;

 

  (iv) all of the governmental (whether federal, state, or local) permits, licenses, authorizations, franchises, grants, easements, variances, exceptions, consents, certificates, approvals, and related instruments or rights relating to the Berry Properties that are not held by LOI as operator of Operated Berry Properties (collectively, the “Berry Permits”);

 

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  (v) all of the Contracts (including sales and purchase contracts, operating agreements, exploration agreements, development agreements, balancing agreements, farmout agreements, service agreements, transportation, processing, treatment and gathering agreements, equipment leases and other contracts, agreements and instruments), including the Contracts described in Schedule 5, (collectively, the “Berry Contracts”) but subject to Section 3.2 and excluding any Master Service Agreement in the name of LINN, other than those described in Part D of Schedule 5;

 

  (vi) all of the proprietary rights and non-proprietary rights to all seismic, geological, geochemical, or geophysical data (including all maps, studies, Third Party studies, reservoir and production engineering studies and simulations, and all field and acquisition records) related to or obtained in connection with the Berry Properties to the extent transferrable without a fee (or, in the event a transfer fee applies, to the extent Berry has agreed, in writing, to pay such transfer fee) (the “Berry G&G Data”);

 

  (vii) all of the Surface Rights;

 

  (viii) all claims, refunds, abatements, variances, allocations, causes of action, claims for relief, choses in action, rights of recovery, rights of set-off, rights of indemnity, contribution or recoupment, counter-claims, cross-claims and defenses to the extent related to the Berry Assets;

 

  (ix)

all of the information, books, databases, files, records and data (other than the Excluded LINN Records and Data), whether in written or electronic format, relating to Berry or any of the other Berry Assets (collectively, the “Berry Records”), which Berry Records shall include all minute books, stock ledgers, corporate seals, and stock certificates of Berry; all reservoir, land, operation and production files and records, inclusive of lease records, well records, division order records, property ownership reports and files, contract files and records, well files, title records (including abstracts of title, title opinions and memoranda, and title curative documents), correspondence, production records, prospect files and other prospect information, supplier lists and files, customer lists and files; and all other data including proprietary and non-proprietary engineering, files and records in the actual possession or control of Berry (or, if applicable, LINN to the extent

 

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  transferable to Berry (i) without material restriction that is not overcome using commercially reasonable efforts (including a material restriction against assignment without prior consent if such consent is not obtained after commercially reasonable efforts) and (ii) without the payment of money or delivery of other consideration or unduly burdensome effect that Berry does not agree in writing to pay or bear), inclusive of maps, logs, core analysis, formation tests, cost estimates, studies, plans, prognoses, surveys and reports, and including raw data and any interpretive data or information relating to the foregoing, and any other proprietary data in the actual possession or control of Berry (or, if applicable, LINN to the extent transferable to Berry (i) without material restriction that is not overcome using commercially reasonable efforts (including a material restriction against assignment without prior consent if such consent is not obtained after commercially reasonable efforts) and (ii) without the payment of money or delivery of other consideration or unduly burdensome effect that Berry does not agree in writing to pay or bear) and relating to the ownership, operation, development, maintenance or repair of, or the production, gathering, treatment, processing, storing, sale or disposal of Hydrocarbons or produced water from, the Berry Properties;

 

  (x) all of the Berry Receivables, cash call pre-payments and other refunds due to Berry (or, if applicable, LINN) for royalty overpayments or future deductions as royalty offsets associated with any of the Berry Properties;

 

  (xi) all of the trade credits, accounts receivable, note receivables, take or pay amounts receivable, and other receivables attributable to the Berry Assets or other Berry Related Assets;

 

  (xii) any software licenses and IT service agreements used solely in connection with or wholly attributable to the Berry Properties, but only to the extent transferable without material restriction (the “Berry Software”);

 

  (xiii) all California greenhouse gas emissions credits and allowances and any other carbon dioxide allowances that are part of the Berry Estate or scheduled on Schedule 10; and

 

  (xiv) all of the vehicles used by, assigned to or otherwise associated with any Berry Employee or solely with any of the other Berry Operated Assets (including any such vehicle that is part of the LINN Estate) (the “Vehicles”).

 

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  3.2 Assignment of Contracts.

 

  (A) General. Subject to paragraph (B) of this Section 3.2, as soon as practicable, but in any event prior to the end of the Transition Period, LINN will assign or cause to be assigned to Berry each Berry Contract to which LINN is party (whether in its own name or as agent for Berry), including marketing agreements, operating agreements, transportation agreements, equipment leases, electrical agreements, rights of way, surface use agreements and other agreements (such Berry Contracts that relate solely to Berry or the Berry Assets, including the Berry Contracts so identified in Part B of Schedule 5, are referred to in the Agreement collectively as the “Berry Operating Contracts”; and such Berry Contracts that relate both to Berry or the Berry Assets on the one hand and LINN or property that is part of the LINN Estate, on the other, including the Berry Contracts so identified in Part C of Schedule 5, are referred to in the Agreement collectively as the “Berry Shared Contracts”); provided, however, that LINN shall only assign such Berry Shared Contracts that are capable of being subdivided without penalty or any incremental cost or expense being paid by LINN and without requiring LINN or Berry to retain any liability for the other under such contract (and in such case shall only assign the portion of such Berry Shared Contract that applies to the Berry Assets); provided, further, that LINN shall use its commercially reasonable efforts to obtain from each Berry Shared Contract counterparty a separation of its Berry Shared Contract into separate contracts between such counterparty and each of LINN and Berry so long as the terms and conditions of the underlying agreement remain substantially the same. Berry shall take such actions as may be required to accept assignment of the Berry Operating Contracts and the Berry Shared Contracts. Notwithstanding the foregoing, if both Berry and LEH are parties to any Berry Shared Contract and such contract relates only to the ownership or operation of properties in which LEH and Berry have shared ownership, LINN may elect to take no action to partition the contracts during the Transition Period, which shall not prejudice either Party’s ability to request or negotiate a partition or novation from the counterparty of such contract at a later date and shall not operate to create a joint and several liability under such contract.

 

  (B) Consent Requirements. Notwithstanding anything to the contrary contained herein, LINN shall not assign any Berry Operating Contract or Berry Shared Contract if the terms of such contract prohibit such assignment, require a consent to such assignment that is not given after LINN has used all commercially reasonable efforts to obtain such consent, or require a fee for such assignment that Berry does not agree to bear, which Berry Operating Contracts and Berry Shared Contracts include those identified in Schedule 5.

 

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  (C) Assigned Operating Contract. Any contract assigned pursuant to this Section 3.2 shall be referred to herein as an “Assigned Operating Contract”; provided, however, that as to Berry Shared Contracts that are assigned, only the portion of the contract assigned to Berry shall be included in the term Assigned Operating Contract.

 

  3.3 Certain Ancillary Agreements. LINN (as applicable) and Berry will execute the following agreements on the dates specified below:

 

  (i) any change of operator forms required to designate Berry as the operator of the Operated Berry Properties (the “Change of Operator Forms”) as soon as practical but in no event later than the final day of the Transition Period; and

 

  (ii) letters in lieu of transfer or division orders directing all purchasers of production from the Berry Assets to make payment of proceeds attributable to such production to Berry from and after the Effective Date in a form reasonably satisfactory to both Parties (the “Letters in Lieu”) as soon as practical but in no event later than the final day of the Transition Period.

In connection with the ancillary agreements described above in this Section 3.3, the Parties agree that Berry shall be the recognized operator of the Hill field and LINN shall be the recognized operator of the Hugoton field.

 

  3.4 Delivery of Documents.

 

  (A) Change of Operator Forms. On or before the end of the last day of the Transition Period (or otherwise in accordance with applicable state requirements), LINN will submit the Change of Operator Forms to the required parties; provided, however, that Berry must have secured the necessary bonding, insurance and regulatory approvals to release LINN of any ongoing liability for Berry’s operatorship.

 

  (B) Letters in Lieu. On or before the first day of the last month of the Transition Period, LINN will submit the Letters in Lieu to the appropriate counterparties.

 

  (C)

Documents Related to Joint Use Agreement. On or before April 1, 2017, LINN will deliver to Berry the following documents related to that certain Joint Use Agreement of even date herewith, by and between LEH and Berry (the “Joint Use Agreement”): (i) a projected budget for the “Gathering Facilities” for the remainder of calendar year 2017, which will include an itemized summary of projected “Capital Expenditures,” “Operating Expenses” and planned nonrecurring maintenance items, and shall list each charge or expense that will be payable to an “Affiliate” of LEH (excluding charges and expenses related to LOI’s employees and third party charges and expenses passed through by LOI to LEH without

 

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  markup) (as each such term is defined in the Joint Use Agreement); and (ii) an amended and restated Exhibit D to the Joint Use Agreement containing a detailed description of all real and personal property comprising the “Gathering Facilities” (as defined in the Joint Use Agreement) based on information in LINN’s files and records, including a reasonably detailed description of each right-of-way and other real property interest included therein and a reasonably detailed description, with specifications, of each segment of pipe and other component thereof.

 

  3.5 Assignment of Operating Property.

 

  (A) Inventory. During the first 30 days of the Term, LINN will inventory all (i) Berry Equipment that is part of the LINN Estate (the “Berry Operating Equipment”), (ii) pipes, casing, tubing, tubulars, fittings, and other spare parts, supplies, tools, and materials located on, used or held for use on or held as inventory in connection with the ownership or operation of the Berry Assets that are part of the LINN Estate (the “Berry Operating Yard Equipment”), (iii) Transferred Hardware, and (iv) Vehicles (together with the Berry Operating Equipment, Berry Operating Yard Equipment and the Transferred Hardware, the “Berry Operating Property”).

 

  (B) Valuation. On or before the 45th day of the Term, LINN will provide Berry with a list of the Berry Operating Property, together with an estimated fair market value (taking into account normal annual depreciation) of the portion of the Berry Operating Property that is not part of the Berry Estate. Berry will notify LINN within ten days if Berry disagrees with any valuation for such portion of the Berry Operating Property, in which case, Berry and LINN will work in good faith to resolve their disagreement on before the 75th day of the Term. If the Parties are unable to agree to a value for a Vehicle prior to such date, then such Vehicle will not be included in the term “Berry Operating Property” for the purpose of paragraph (C) of this Section 3.5 or the term “Berry Related Assets” and will be retained without further obligation by LINN. If the Parties are unable to agree to a value for any portion of the Berry Operating Equipment or the Berry Yard Equipment that is not part of the Berry Estate, then LINN will hire a Third Party appraiser to determine the amount of such value, the expense for such appraiser to be shared equally between the Parties.

 

  (C)

Conveyance. Once the Parties have agreed to the fair market value (taking into account normal annual depreciation) for the portion of the Berry Operating Property that is not part of the Berry Estate (or the appraiser has determined such value in accordance with paragraph (B) of this Section 3.5, in either case the aggregate amount to be referred to herein as the “Operating Property Amount”), LINN will convey the Berry Operating Property and the Transferred Hardware to Berry using a Bill of Sale in a

 

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  form substantially similar to Exhibit F. In addition, LINN will take any additional steps necessary under applicable state or local law to transfer any title held by LINN to the Berry Operating Property to Berry. Berry will reimburse LINN for the Operating Property Amount in accordance with Section 5.4. Prior to the end of the Transition Period, LINN will convey the Hill Field Offices to Berry using a Special Warranty Deed in a form substantially similar to Exhibit G.

 

  (D) Berry Records. Throughout the Transition Period (and, with regard to records created during the Accounting Period, throughout the Accounting Period), LINN will deliver the Berry Records to Berry, at Berry’s expense, (to the extent not already delivered) in their current form and format; provided, however, that LINN shall not be required to conduct processing, conversion, compiling or any other further work with respect to delivery of the Berry Records; provided, however, further, that LINN may retain a copy of any Berry Records related to accounting or the Hill assets (and may copy, at Berry’s expense, Berry Records related to the Hugoton assets and retain the original, delivering the copy as the Berry Record). Berry agrees to maintain the Berry Records for a period of five years following the expiration of the Term, and, during such time, to (i) provide copies of any Berry Records that relate to the accounting, to the Hill and Hugoton assets, or are needed to respond to any legal proceeding or claim by a Third Party or by Berry, to LINN, at LINN’s sole expense and upon reasonable advance notice, and (ii) give 90 days’ prior written notice to LINN before destroying any Berry Record, in which event LINN may, at its option and expense, upon prior written notice given within such 90 day period to Berry, take possession of such Berry Records within 180 days after the date of such notice.

 

  (E) Hugoton Field Offices. LINN agrees that if Berry (or its successor in interest) becomes the operator of the Hugoton properties under or pursuant to the applicable Joint Operating Agreement between Linn and Berry dated of even date herewith, then LINN or its successor in interest will convey the Hugoton Field Offices to Berry (or such successor in interest) for $1 using a Special Warranty Deed in a form substantially similar to Exhibit G.

 

  3.6 Assignment of Berry Related Assets. Without limiting the provisions set forth in Section 1.3 regarding the transfer or assignment of the Berry Permits, Section 3.2 regarding the assignment of the Berry Contracts, and Section 3.5 regarding the conveyance of the Berry Operating Property, prior to the end of the Transition Period, LINN shall transfer, assign, and convey or cause to be transferred, assigned, and conveyed to Berry all other Berry Related Assets that are held in the LINN Estate. Such transfers, assignments, and conveyances shall be in form reasonably satisfactory to the Parties.

 

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  3.7 Further Assurances. For a period of one year from the Effective Date, each of LINN and Berry shall (i) furnish upon request to the other Party such further information, (ii) execute, acknowledge and deliver to such other Party such other documents, and (iii) do such other acts and things, as such other Party may reasonably request for the purpose of carrying out the intent of this Agreement or the Berry Consensual Plan or the Linn Consensual Plan. In addition, LINN shall use commercially reasonable efforts to continue to assist Berry in connection with the resolution of claims against Berry and Linn Acquisition Company, LLC relating to the Chapter 11 Cases (as defined in the Berry Consensual Plan); provided, however, that LINN will not be required to provide such assistance after the Term of this Agreement absent mutual agreement of the Parties, including agreement as to the additional compensation to LINN for such assistance.

 

4. Employment.

 

  4.1 Access Period. During the period from the Effective Date until the date that is 15 days prior to the end of the Transition Period (the “Access Period”), LINN shall provide to Berry or its designated representatives reasonable access to any LINN employee on the Available Employee List attached as Schedule 6. At any time prior to the date that is 20 days prior to the end of the Accounting Period, LINN may designate additional employees to be made available to Berry, such designation to be made in writing, in which case such individuals will be treated as Berry-LINN Employees for the purpose of Section 4.2 but not Section 4.3.

 

  4.2 Employment Offers. All Berry Employees shall be extended offers of employment by Berry during the Transition Period in accordance with an offer process determined by Berry in consultation with LINN. In addition, either Party may extend employment offers to any of the Berry-LINN Employees during the period beginning on the date that is 15 days prior to the end of the Transition Period and ending on the date that is 15 days prior to the end of the Accounting Period (the “Offer Period”). Any employment offer will require acceptance of the same within ten days and will be effective on the first day following the end of the Transition Period (or, if appropriate for a Berry-Linn Employee, on the first day following the end of the Accounting Period). Each Party will share the responses to employment offers made under this Section 4.2 promptly upon receipt with the other Party; provided, however, that neither Party shall be required to disclose the terms of any offer except to the extent necessary to establish any severance fees or obligations under Section 4.3.

 

  4.3 Severance Amounts. At the conclusion of the Offer Period, Berry shall provide a list of all Available Employees to whom Berry submitted an offer. For each Berry Employee (i) who is not made an offer of employment that would avoid a Qualifying Termination for such employee (as such term is defined in LINN’s Severance Plan, attached hereto as Schedule 7) and (ii) whose employment is terminated by LINN on or prior to the end of the Term, Berry will be charged 100 percent of any severance fees and obligations associated with such termination. For each Berry-LINN Employee (x) who is not made an offer of employment that

 

20


  would avoid a Qualifying Termination for such employee and (y) whose employment is terminated by LINN on or prior to the end of the Term, Berry will be charged 30 percent of any severance fees and obligations associated with such termination (the aggregate amount payable by Berry under this Section 4.3 is referred to herein as “Berry Severance Fees”). LINN shall retain responsibility for (A) 70 percent of any severance fees and obligations associated with the termination on or prior to the end of the Term of any Berry-LINN Employee, and (B) 100 percent of any severance fees and obligations associated with the termination of any LINN employee who is not an Available Employee or whose employment is not terminated on or before the end of the Term (even if such employee provides Services under this Agreement).

 

  4.4 Non-Solicitation of Certain Employees. During the Transition Period, LINN shall not solicit any Berry Employee to remain as an employee of LINN or otherwise encourage or induce such Berry Employee not to accept employment with Berry; provided, however, that nothing in the foregoing will prohibit LINN from making such solicitation after the end of the Transition Period to any Berry Employee who did not accept Berry’s offer of employment under Section 4.2, subject to the following sentence. In addition to the immediately preceding sentence, and except as specifically described in Sections 4.1 and 4.2, for a period of two years from the Effective Date, neither LINN nor Berry or either of their respective Affiliates will, directly or indirectly, (i) solicit for employment, offer employment or employ any employee of the other Party or its respective Affiliates, (ii) otherwise divert or induce any such employee to terminate or materially alter his or her employment or contractual relationship with the other Party or its respective Affiliates, or (iii) agree to do any of the foregoing; provided, however, that neither Party shall be considered to have breached the provisions of this sentence solely because any such employee responds to a general advertisement or a Third Party search firm that has not directed its search specifically at such employees of the other Party or its respective Affiliates. Each Party shall be liable for the compliance of its Affiliates and its and their respective agents and representatives with the terms of this Section 4.4. Each Party acknowledges and agrees that if such Party violates (or threatens to violate) any of the terms of this Section 4.4, then the other Party will not have an adequate remedy at law and in such event such other Party shall have the right, in addition to all other rights available at law or in equity, to obtain injunctive relief to restrain any breach or threatened breach of the terms of this Section 4.4.

 

5. Term and Termination; Service Fees; Monthly Settlement.

 

  5.1 Term and Termination.

 

  (A)

Term. This Agreement shall be effective as of the Effective Date, and shall continue in effect until the end of the Accounting Period, unless terminated earlier in accordance with this Section 5.1 (the “Term”). Except as otherwise provided herein, upon expiration of the Term or earlier termination of this Agreement, LINN shall no longer be responsible

 

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  for the performance of the Services, and all rights and obligations under this Agreement shall cease except for (i) rights or obligations that are expressly stated to survive the expiration or termination of this Agreement, (ii) the provisions set forth in the last sentence of paragraph (B) of Section 2.3, in paragraph (A) of Section 3.1, in paragraph (D) of Section 3.5 in paragraph (E) of Section 3.5, in paragraph (D) of this Section 5.1, in Sections 3.7, 4.4, 5.2, 5.4 and 5.5, and in Articles 6, 8, and 9, which shall continue in accordance with their terms, and (iii) the last sentence in paragraph (E) of this Section 5.1, which will survive the expiration or termination of this Agreement indefinitely, and (iv) liabilities and obligations that have accrued prior to such expiration or termination, including the obligation to pay any amounts that have become due and payable prior to such expiration or termination.

 

  (B) Termination by Berry. Berry may, without cause and in accordance with the terms and conditions hereunder, (i) request the discontinuation of one or more portions of the Services, or (ii) request the discontinuation of all of the Services and terminate this Agreement prior to the expiration of the Term, in each case, by giving LINN not less than 15 days’ prior written notice; provided, however, that (a) the effective date of such termination must be the first or last day of a calendar month, (b) the discontinuation of less than all of the Services will require LINN’s consent (which consent shall not be unreasonable delayed or withheld), (c) Berry must have satisfied the condition precedent of paragraph (A) of Section 3.4 prior to terminating the Services described in Section 1.1 or all of the Services, and (d) Berry shall be liable to LINN for all fees and expenses accrued with respect to the provision of the discontinued Services as of the date of discontinuation, including any amounts that LINN remains obligated to pay under any contract entered into in accordance with this Agreement solely in order to provide the Services.

 

  (C) Termination for Material Breach. Either Party may terminate this Agreement if the other Party is in material breach of this Agreement and such other Party fails to cure such breach within five Business Days following receipt of written notice thereof from the non-breaching Party; provided, however, that (i) LINN may not terminate this Agreement and withdraw from providing the Services if such breach is not capable of being cured and Berry continues to pay the Service Fees, and (ii) subject to Berry using all reasonable efforts to obtain a qualified and financially responsible replacement for LINN reasonably acceptable to Berry and Berry’s continued payment of the Service Fees, LINN may not terminate this Agreement and withdraw from providing the Services until a qualified and financially responsible replacement for LINN reasonably acceptable to Berry has agreed to take over as LINN and assume responsibility for the Services under this Agreement on terms and conditions reasonably acceptable to Berry.

 

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  (D) Obligations of LINN upon Termination. Without limiting the second sentence of paragraph (A) of this Section 5.1, upon termination of this Agreement, LINN shall assign, transfer, and deliver to Berry (or to such other Person as Berry shall direct) (i) title to all Berry Related Assets that are part of the LINN Estate (in accordance with the provisions of Sections 3.2, 3.5, and 3.6 and subject to Berry’s requirement to reimburse LINN for the same) and (ii) possession and control of all operations hereunder and all of the Berry Assets in the possession or control of LINN or any subcontractor of LINN, but only to the extent Berry has complied or does comply with the conditions precedent described in Section 3.4(A). Without limiting the foregoing, upon the effective date of termination, LINN shall assign and deliver to, and relinquish custody in favor of, Berry (or such other Person selected by Berry) all of Berry’s funds held or controlled by LINN, and all Suspense Funds, and all books, accounts, records and inventories relating to the Berry Assets, facilities and/or the operations hereunder.

 

  (E) Obligations of Berry upon Termination. Effective upon termination of this Agreement, Berry assumes and agrees to discharge when due any and all Liabilities attributable to or arising from the Berry Related Assets except as otherwise provided in this Agreement and except for any such Liabilities discharged or otherwise released pursuant to or in connection with the Berry Consensual Plan or the LINN Consensual Plan. Notwithstanding anything herein to the contrary, Berry hereby agrees to release and fully indemnify, defend, and hold harmless the LINN Indemnified Parties from each and every Claim related to such assumed Liabilities.

 

  5.2 Service Fees and Employee Expenses.

 

  (A) Reimbursement Expenses. Berry shall pay and reimburse LINN for any and all reasonable Third Party out-of-pocket costs and expenses without mark-up (including operating costs, capital expenditures, drilling and construction overhead charges, Third Party administrative overhead charges, joint interest billing, lease, lease operating, lease rental, bonus and shut-in payment, royalty, overriding royalty, net profits interest expenses, and records and data transfer expenses) and reasonable and necessary travel expenses actually incurred by LINN to the extent documented and incurred in connection with providing the Services during the Term (the “Reimbursement Expenses”); provided, however, that Reimbursement Expenses will not include Third Party contractors engaged by LINN after the Effective Date to provide portions of the Services where such portions of the Services were performed by LINN employees prior to the Effective Date unless expressly agreed to in writing by the Parties.

 

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  (B) Management Fee. In addition to the foregoing Reimbursement Expenses, Berry shall pay to LINN $6,000,000 per month (prorated for partial months) during the Transition Period (the “Full Management Fee”) and $2,700,000 per month (prorated for partial months) during the Separation Period (the “Limited Management Fee” and together with the Full Management Fee, the “Management Fee”). The Management Fee, together with the Reimbursement Expenses, are referred to collectively herein as the “Service Fees.”

 

  5.3 Cash Call.

 

  (A) Cash Calls. It is not the intent of this Agreement for LINN to advance any of its own funds. If there are lease operating expenses or capital expenditures that would otherwise be paid by LINN pursuant to this Agreement, LINN shall provide a written cash call (“Cash Call”) to Berry detailing the amount of such expenses, the proposed use thereof, and the date such funds are required, together with supporting documentation, for approval by Berry in advance of LINN incurring the same. Berry shall, within five Business Days of receipt of such Cash Call, render a decision to provide such amount to LINN for payment (in whole or in part) or to decline such payment (in which event LINN will be relieved of any obligation to conduct the associated activity). Berry reserves the right to approve any or all detail amounts included in any Cash Call.

 

  (B) Emergencies. Notwithstanding anything to the contrary in this Agreement, the Parties agree that in the event LINN reasonably believes there is an emergency involving actual or imminent loss of life, material damage to any of the Berry Assets or the environment, or substantial and immediate financial loss, LINN shall advance its own funds for any expense or expenditure that LINN determines is necessary under the circumstances as a reasonable and prudent operator to address such emergency (but only to the extent necessary to stabilize the situation and alleviate the imminent threat) without the need to make a Cash Call. If LINN takes any action pursuant to the immediately preceding sentence, then LINN shall promptly (but within any event within 48 hours) notify Berry of the taking of such action and deliver an invoice to Berry reflecting (i) the expenditures already incurred by LINN to address such emergency and (ii) LINN’s reasonable projection of expenditures to be incurred by LINN over the subsequent seven days to further address such emergency, and Berry shall promptly (and in no event later than 48 hours following receipt of such notice) reimburse and advance to LINN all such expenditures set forth such invoice.

 

  5.4

Monthly Settlement Statement. On the date any amounts are to be transferred pursuant to Section 5.5, LINN shall submit to Berry a “Monthly Settlement Statement” prepared substantially in the form of Exhibit C, calculating the Current Month Settlement, to the extent any such amount has not previously been accounted for in a prior Current Month Settlement or under this Agreement or otherwise accounted for prior to the Effective Date between the Parties. The

 

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  Current Month Settlement” shall be calculated (without duplication) as follows in this Section 5.4:

 

  (i) the net revenue interest share of all revenues (less severance and production taxes allocable to Berry under this Agreement and paid by or on behalf of LINN) attributable to the sale of production from the Berry Properties and received by LINN;

 

  (ii) less the working interest share of all direct operating expenses incurred by LINN for Berry’s account (exclusive of any expenses prepaid by Berry) (with respect to the Non-Operated Berry Properties, such direct operating expenses shall include overhead charges based on the applicable COPAS accounting procedures);

 

  (iii) plus COPAS and administrative overhead credits received by LINN from other owners for the Operated Berry Properties (excluding Berry) for operations subsequent to the Effective Date;

 

  (iv) less the working interest share of all capital expenditures incurred by LINN for Berry’s account related to the Berry Properties for operations;

 

  (v) less the working interest share of all bonuses, lease rentals, shut-in payments, and other charges paid by LINN on behalf of Berry;

 

  (vi) less the Reimbursement Expenses as stipulated in paragraph (A) of Section 5.2;

 

  (vii) less the Management Fee as stipulated in paragraph (B) of Section 5.2;

 

  (viii) less any amounts due under Section 5.2 that remain unpaid;

 

  (ix) less the Operating Property Amount due under Section 3.5;

 

  (x) less any Berry Severance Fees due under Section 4.3; and

 

  (xi) plus or less, as applicable, such other amounts as may be agreed to by the Parties.

Other than the Reimbursement Expenses, Management Fee and any Berry Severance Fees, Berry shall not be charged hereunder for any internal overhead, COPAS, non-billable charges of LINN allocated by LINN to any of the Berry Properties, or COPAS overhead charges attributable to the Operated Berry Properties.

 

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  5.5 Transfer of Cash. On the 15th day of each calendar month during the Term and for the three calendar months following the end of the Term, (i) if the Current Month Settlement is a positive number, then LINN shall pay to Berry via wire transfer into a Berry-owned account the Current Month Settlement and (ii) if the Current Month Settlement is a negative number, then Berry shall pay to LINN via wire transfer from a Berry-owned account into a LINN owned account the Current Month Settlement.

 

  5.6 Third Party Joint Interest Billings. During the Accounting Period, LINN shall provide to Berry monthly aged accounts receivable reports detailing any uncollected joint interest billings issued to Third Parties for operations conducted on the Operated Berry Properties not otherwise accounted for prior to the Effective Date between the Parties. LINN shall use commercially reasonable efforts to collect all joint interest billings so billed. At the end of the Accounting Period, Berry shall reimburse LINN for the then outstanding amount of joint billings attributable to operations on the Operated Berry Properties not otherwise accounted for prior to the Effective Date by the Parties (the “Transition JIB Balance”). After Berry reimburses LINN, Berry shall have the right to retain all amounts it collects relative to the Transition JIB Balance, and LINN shall promptly remit to Berry any amounts received relative to the Transition JIB Balance. For the avoidance of doubt nothing in this Section 5.6 is intended to, or does, require Berry to reimburse LINN for joint interest billings for which (i) LINN did not perform the associated operations or (ii) Berry has already reimbursed LINN.

 

  5.7 No Duplication of Payments to LINN. Notwithstanding anything contained herein to the contrary, in no event shall there be a duplication of payments to LINN under this Agreement for any matters, charges or costs of any kind which are covered by, or related to, Reimbursement Expenses, the Management Fee, and/or Cash Calls.

 

  5.8

Final Settlement. On or before 60 days after the end of the Accounting Period, LINN will prepare and deliver to Berry a settlement statement setting forth the cumulative amounts charged and credited under Section 5.4, the cumulative cash transfers under Section 5.5, and any other accounting transfer that is required to be made under this Agreement, including but not limited to the transfer of Suspense Funds (the “Final Settlement Statement”). As soon as reasonably practicable but not later than the 30th day following receipt of Berry’s statement hereunder, Berry shall deliver to LINN a written report containing any changes that Berry proposes be made to such statement, if any. LINN may deliver a written report to Berry during this same period reflecting any changes that LINN proposes to be made to such statement as a result of additional information received after the statement was prepared. The Parties shall undertake to agree on the Final Settlement Statement no later than 120 days after the end of the Accounting Period. If the Parties are unable to reach an agreement at such time, then either Party may submit the remaining matters in dispute to an Independent Expert for resolution pursuant to Section 8.3. Within ten days after the earlier of (a) the expiration of Berry’s 60-day review period without delivery of any written report or (b) the date on which the Parties finally agree on the Final Settlement

 

26


  Statement or the Independent Expert resolves the disputed matters, as applicable, (x) if the net amount of all entries in the Final Settlement Statement shows a balance owed to Berry, then LINN shall pay to Berry via wire transfer into a Berry-owned account such net amount due and (ii) if the net amount of all entries in the Final Settlement Statement shows a balance owed to LINN, then Berry shall pay to LINN via wire transfer into a LINN-owned account such net amount due.

 

6. Indemnification; Limitation and Exclusion of Damages.

 

  6.1 Indemnity and Release by Berry.

 

  (A) Subject to Section 6.3 and Section 6.4, and the proviso to the last sentence of this Section 6.1(A), LINN shall have no liability to Berry for, and Berry hereby releases, and shall indemnify, defend, and hold harmless, the LINN Indemnified Parties from, each and every Claim attributable to, or arising out of, any act or omission by LINN involving or related to the Services (or Berry’s use thereof), including, but not limited to, LINN’s failure to pay or to collect sums due, erroneous or improper payment, late payment, preparation of erroneous payment statement, administration of the Suspense Funds (including any escheatment obligations related thereto), or any other such cause, EVEN IF SUCH CLAIMS ARISE OUT OF THE NEGLIGENCE, STRICT LIABILITY, OR OTHER FAULT OF LINN OR THE LINN INDEMNIFIED PARTIES, except for any such Claim that may result from (and only to the extent it results from) LINN’s gross negligence or willful misconduct. The foregoing release and indemnity shall expressly survive any expiration or termination of this Agreement and shall apply notwithstanding anything to the contrary contained in this Agreement (including under this Article 6); provided, however, that Berry shall have no indemnity or defense obligations to the LINN Indemnified Parties (and shall not be deemed to have released the LINN Indemnified Parties) with respect to any Claim for which LINN is required to indemnify or defend the Berry Indemnified Parties pursuant to Section 6.2.

 

  (B)

BERRY SPECIFICALLY AGREES TO FULLY DEFEND, INDEMNIFY AND HOLD HARMLESS ANY LINN INDEMNIFIED PARTY REGARDING ANY CLAIMS ARISING FROM, OR IN CONNECTION WITH, BERRY’S OR ITS SUBCONTRACTORS’ EMPLOYEES’ ACTIVITIES ON OPERATED BERRY PROPERTIES OR LINN-OWNED PROPERTY, INCLUDING, BUT NOT LIMITED TO, ALL CLAIMS FOR BODILY INJURY, PERSONAL INJURY, ILLNESS, OR DEATH BROUGHT BY BERRY’S OR BERRY’S SUBCONTRACTOR’S EMPLOYEES AGAINST ANY LINN INDEMNIFIED PARTY, SOLELY TO THE EXTENT SUCH CLAIM RESULTS FROM OR IS ATTRIBUTABLE TO THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY OF BERRY’S OR ITS SUBCONTRACTORS’ EMPLOYEES, EXCEPT FOR ANY

 

27


  SUCH CLAIM THAT MAY ARISE OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY LINN INDEMNIFIED PARTY. THIS PROVISION CONTROLS OVER ANY CONFLICTING PROVISION IN THIS AGREEMENT.

 

  6.2 Indemnity by LINN.

 

  (A) Subject to Section 6.3 and Section 6.4, LINN shall indemnify, defend, and hold harmless Berry and its Affiliates, and their respective directors, officers, employees, agents, managers, shareholders and representatives (together with Berry, the “Berry Indemnified Parties”) from and against any and all Claims suffered by the Berry Indemnified Parties as a result of, caused by, or arising out of (i) any breach of any covenant of LINN under this Agreement, or (ii) the sole, joint or concurrent negligence, gross negligence or willful misconduct of LINN or its Affiliate in its performance or failure to perform under this Agreement; PROVIDED, HOWEVER, THAT LINN SHALL HAVE NO OBLIGATION TO INDEMNIFY THE BERRY INDEMNIFIED PARTIES UNDER THIS SECTION 6.2(A) WITH RESPECT TO ANY CLAIM ATTRIBUTABLE TO LINN’S PERFORMANCE OF ITS OBLIGATIONS UNDER SECTION 1.1 AND SECTION 1.10 UNLESS SUCH CLAIM IS A RESULT OF, IS CAUSED BY, OR ARISES OUT OF LINN’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

 

  (B) LINN SPECIFICALLY AGREES TO FULLY DEFEND, INDEMNIFY AND HOLD HARMLESS ANY BERRY INDEMNIFIED PARTY REGARDING ANY CLAIMS ARISING FROM, OR IN CONNECTION WITH, LINN’S OR ITS SUBCONTRACTOR’S EMPLOYEES’ ACTIVITIES RELATED TO THE BERRY ASSETS, INCLUDING, BUT NOT LIMITED TO, ALL CLAIMS FOR BODILY INJURY, PERSONAL INJURY, ILLNESS, OR DEATH BROUGHT BY LINN’S OR ITS SUBCONTRACTOR’S EMPLOYEES AGAINST ANY BERRY INDEMNIFIED PARTY, EXCEPT FOR ANY SUCH CLAIM THAT MAY ARISE OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY BERRY INDEMNIFIED PARTY REGARDLESS OF WHETHER SUCH INJURY OR DEATH IS OR IS ALLEGED TO BE CAUSED BY THE SOLE, PARTIAL OR CONCURRENT NEGLIGENCE OR STRICT LIABILITY OF SUCH BERRY INDEMNIFIED PARTY. THIS PROVISION CONTROLS OVER ANY CONFLICTING PROVISION IN THIS AGREEMENT.

 

  6.3 Limitation of Liability. The total and cumulative liability of LINN arising out of, relating to, or in connection with, any performance or lack of performance of the Services, including for indemnification obligations and damages pursuant to this Article 6 (whether a claim therefor is based on warranty, contract, tort (including negligence or strict liability), statute, or otherwise) shall not exceed the aggregate Service Fees paid to LINN by Berry under this Agreement; provided, however, that this Section 6.3 shall not apply to any liability of LINN arising out of, relating to, or in connection with LINN’s gross negligence or willful misconduct.

 

28


  6.4 Exclusion of Certain Damages. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH, ANY PERFORMANCE OR LACK OF PERFORMANCE UNDER THIS AGREEMENT FOR INCIDENTAL, INDIRECT, PUNITIVE, EXEMPLARY, CONSEQUENTIAL, OR SPECIAL DAMAGES (INCLUDING DAMAGES FOR LOST PROFITS, LOSS OF USE, LOST REVENUE, LOST SAVINGS, LOSS OF DATA, OR LOSS BY REASON OF COST OF CAPITAL), EVEN IF SUCH DAMAGES WERE FORESEEABLE OR THE PARTY SOUGHT TO BE HELD LIABLE WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND REGARDLESS OF WHETHER A CLAIM THEREFOR IS BASED ON CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE OR STRICT LIABILITY), OR ANY OTHER LEGAL OR EQUITABLE PRINCIPLE, SAVE AND EXCEPT ANY SUCH DAMAGES PAYABLE WITH RESPECT TO THIRD PARTY CLAIMS. NOTWITHSTANDING ANYTHING IN THIS SECTION 6.4 TO THE CONTRARY, NEITHER PARTY’S RECOVERY FOR LOST PROFITS, LOSS OF USE, LOST REVENUE, LOST SAVINGS, LOSS OF DATA, OR LOSS BY REASON OF COST OF CAPITAL SHALL BE LIMITED TO THE EXTENT CONSTITUTING DIRECT DAMAGES. EACH PARTY AGREES AND ACKNOWLEDGES THAT THE RISK ALLOCATION AND LIMITATIONS OF LIABILITY SET FORTH IN THIS AGREEMENT ARE FUNDAMENTAL TO EACH PARTY’S BENEFIT OF THE BARGAIN UNDER THIS AGREEMENT. NEITHER PARTY SHALL ALLEGE THAT ANY REMEDY OR ANY PROVISION OF THIS AGREEMENT FAILS OF ITS ESSENTIAL PURPOSE AND THE LIMITATIONS IN THIS ARTICLE 6 WILL APPLY NOTWITHSTANDING THE FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY IN THIS AGREEMENT.

 

7.

Insurance. In support of its indemnity obligations under this Agreement, but as a separate and independent obligation, Berry shall obtain and maintain in force throughout the Term insurance coverage from insurance providers with A.M. Best ratings of A-, VII or better, in the amounts and types as further described on Exhibit D. All deductibles shall be for the account of Berry and to the extent of the indemnities and liabilities contractually assumed by Berry under this Agreement, Berry shall cause the LINN Indemnified Parties to be added as insureds with respect to all insurance policies (excluding Worker’s Compensation and Employer’s Liability). Berry shall further cause its insurers to waive, and Berry hereby does waive, any rights of subrogation or recovery against any LINN Indemnified Parties; all such insurance required of Berry hereunder shall be primary coverage to any insurance maintained by any LINN Indemnified Parties. Berry, upon LINN’s request, shall provide certificates evidencing the insurance coverages required under this Agreement. The obligations of Berry, with respect to the maintenance of insurance under this Agreement, are in support of, but separate and apart from, Berry’s indemnification obligations under this Agreement. To the extent applicable, for the

 

29


  purposes of Title 6, Chapter 127 of the Texas Civil Practice and Remedies Code, commonly known as the Texas Oilfield Anti-Indemnity Act, the indemnity and insurance provisions of this Agreement applicable to property damage and the indemnity and insurance provisions applicable to personal injury, bodily injury, and death shall be deemed separate for interpretation, enforcement, and other purposes. The Parties agree that in order to be in compliance with the Texas Oilfield Anti-Indemnity Act regarding mutually assumed indemnification for the other Party’s sole or concurrent negligence, each Party shall carry supporting insurance in equal amounts of the types and in the minimum amounts as specified in the insurance requirements hereunder. All indemnities in this Agreement shall only be effective to the maximum extent permitted by Applicable Law. The Parties hereby incorporate Title 6, Chapter 127 of the Texas Civil Practice and Remedies Code as part of this Agreement and agree to the limits of that statute. If LINN does not carry insurance in the minimum amounts as specified in the insurance requirements in regard to mutual indemnity obligations, then it is agreed that LINN has approved self-insurance as stated in the Texas Oilfield Anti-Indemnity Act and the mutual indemnification amount shall be the maximum amount carried by LINN.

 

8. Arbitration.

 

  8.1 General. Any and all claims, disputes, controversies or other matters in question arising out of or relating to an audit dispute under Section 2.8, a disagreement on the list of Berry Operating Property under paragraph (B) of Section 3.5, calculation of the Monthly Settlement Statement under Section 5.4, or calculation of the Final Settlement Statement under Section 5.8, or any amounts therein or revisions thereto (all of which are referred to herein as “Disputes,” which term shall not include any other claims, disputes, controversies or other matters in question arising under this Agreement) shall be resolved in the manner prescribed by this Article 8.

 

  8.2 Senior Management. If a Dispute occurs that the senior representatives of the Parties responsible for this Agreement have been unable to settle or agree upon within a period of 15 days after such Dispute arose, then each Party shall nominate and commit one of its senior officers to meet at a mutually agreed time and place not later than 30 days after such Dispute arose to attempt to resolve same. If such senior management have been unable to resolve such Dispute within a period of 15 days after such meeting, or if such meeting has not occurred within 45 days after such Dispute arose, then either Party to such Dispute shall have the right, by written notice to the other Party to such Dispute, to resolve such Dispute through the relevant Independent Expert pursuant to Section 8.3.

 

  8.3 Dispute Resolution by Independent Expert.

 

  (A) Each Party shall have the right to submit each Dispute to an independent expert appointed in accordance with this Section 8.3 (each, an “Independent Expert”), who shall serve as sole arbitrator. The Independent Expert shall be appointed by mutual agreement of the Parties from among candidates with experience and expertise in the area that is the subject of such Dispute, and failing such agreement, such Independent Expert for such Dispute shall be selected in accordance with the rules of the Commercial Arbitration Rules and Mediation Procedures (the “Rules”) of the AAA.

 

30


  (B) Each Dispute to be resolved by an Independent Expert shall be resolved in accordance with mutually agreed procedures and rules, including with regard to written discovery, depositions, summary judgment motions, prehearing procedures, and date, time, location and length of the hearing, and failing such agreement, in accordance with the Rules to the extent such Rules do not conflict with the provisions of this Agreement. The Independent Expert shall be instructed by the Parties to resolve such Dispute as soon as reasonably practicable in light of the circumstances, but in no case later than 30 days after conclusion of the arbitration hearing. The Independent Expert shall support the decision and award with a reasoned, written opinion. The decision and award of the Independent Expert shall be binding upon the Parties as an award under the Federal Arbitration Act and final and non-appealable to the maximum extent permitted by Applicable Law, and judgment thereon may be entered in a court of competent jurisdiction and enforced by any Party as a final judgment of such court.

 

  (C) The charges and expenses of the arbitrator shall be shared one-half by Berry and one-half by LINN.

 

  8.4 Limitation on Arbitration. ALL OTHER DISAGREEMENTS, DIFFERENCES, OR DISPUTES ARISING BETWEEN THE PARTIES UNDER THE TERMS OF THIS AGREEMENT (AND NOT COVERED BY THE DEFINITION OF “DISPUTES” SET FORTH IN SECTION 8.1) SHALL NOT BE SUBJECT TO ARBITRATION AND SHALL BE DETERMINED BY THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF TEXAS UNLESS THE PARTIES OTHERWISE MUTUALLY AGREE.

 

9. Miscellaneous.

 

  9.1 Successors and Assigns. This Agreement shall inure to the benefit of, and shall be binding upon, the Parties and their respective successors and assigns; provided, however, that this Agreement and all rights and obligations hereunder cannot be assigned by either Party (by operation of law or otherwise) without the prior written consent of the other Party, such consent to be at such other Parties’ sole discretion.

 

  9.2 Entire Agreement. Except for and without limiting either Party’s rights under the Berry Consensual Plan, this Agreement constitutes the entire agreement and understanding between the Parties with respect to the subject matter of this Agreement (including the Services). Notwithstanding the foregoing, in the event of a conflict between the provisions of this Agreement and the Berry Consensual Plan, the terms of the Berry Consensual Plan shall prevail. For the avoidance of doubt, the Agency Agreement and Power of Attorney dated March 5, 2014, executed by Berry and LOI has been terminated and is of no further force or effect.

 

31


  9.3 Amendment. This Agreement may be amended or modified only by written instrument executed by the authorized representatives of LINN and Berry, respectively.

 

  9.4 Choice of Law. The provisions of this Agreement shall be governed by, and construed in accordance with, the laws of the State of Texas, without regard to the conflicts of laws principles thereof. Subject to Article 8, each Party hereby irrevocably and unconditionally submits to the exclusive jurisdiction of the United States Bankruptcy Court for the Southern District of Texas over any suit, action, or proceeding arising out of or relating to this Agreement.

 

  9.5 No Recourse. All Claims that may be based upon, arise out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement, may be made only against the Persons that are expressly identified as Parties (i.e., LINN or Berry). No Person who is not a named party to this Agreement, including any past, present or future direct or indirect director, officer, employee, incorporator, member, manager, partner, equity holder, Affiliate, agent, attorney or representative of any named Party to this Agreement (“Non-Party Affiliates”), shall have any liability (whether in contract or in tort or otherwise, or based upon any theory that seeks to impose liability of an entity party against its owners or Affiliates) for any obligations or liabilities arising under, in connection with or related to this Agreement or for any claim based on, in respect of, or by reason of this Agreement or its negotiation or execution, and each Party waives and releases all such liabilities, claims and obligations against any such Non-Party Affiliates. Non-Party Affiliates are expressly intended as third-party beneficiaries of this provision of this Agreement.

 

  9.6 Unenforceable Provisions. Any provision in this Agreement that might otherwise be invalid or unenforceable because of the contravention of any Applicable Law shall be deemed to be amended to the extent necessary to remove the cause of such invalidation or unenforceability, and such provision, as amended, shall remain in full force and effect.

 

  9.7 No Set-Off. Except as mutually agreed to in writing by LINN and Berry, neither Party shall have any right of set-off or other similar rights with respect to (i) any amounts received pursuant to this Agreement or (ii) any other amounts claimed to be owed to the other Party arising out of this Agreement or any other agreement between the Parties.

 

32


  9.8 Notices.

 

  (A) All notices, consents, waivers and other communications under this Agreement must be in writing and shall be deemed to have been duly given when (a) delivered by hand (with written confirmation of receipt), (b) sent by email (with read receipt requested, with the receiving Party being obligated to respond affirmatively to any read receipt requests delivered by the other Party), (c) received by the addressee, if sent by a delivery service (prepaid, receipt requested) or (d) received by the addressee, if sent by registered or certified mail (postage prepaid, return receipt requested), in each case to the appropriate addresses and representatives (if applicable) set forth below, except as provided in paragraph (B) of this Section 9.8, (or to such other addresses and representatives as a Party may designate by notice to the other Party):

 

  (i) If to LINN, then to:

Linn Operating, Inc.

600 Travis Street

Houston, Texas 77002

Attn: Arden Walker

Phone: [(281) 840-4000

E-mail: awalker@linnenergy.com

with copies (which shall not constitute notice) to:

Linn Operating, Inc.

600 Travis Street

Houston, Texas 77002

Attn: General Counsel

Phone: (281) 840-4000

E-mail: cwells@linnenergy.com

Kirkland & Ellis LLP

600 Travis Street, Suite 3300

Houston, Texas 77002

Attn:    Anthony Speier, P.C.; David M. Castro, Jr.

Phone: (713) 835-3607; (713) 835-3609

E-mail: anthony.speier@kirkland.com

david.castro@kirkland.com

 

33


  (ii) If to Berry:

Berry Petroleum Company, LLC

5201 Truxtun Avenue, Suite 100

Bakersfield, California 93309

Attn: Arthur T. Smith, Chief Executive Officer

Phone: (214) 384-3966

E-mail: tsmith@bry.com

with a copy (which shall not constitute notice) to:

Norton Rose Fulbright US LLP

1301 McKinney, Suite 5100

Houston, Texas 77010-3095

Attn: John G. Mauel, Partner

Phone: (713) 651-5173

E-mail: john.mauel@nortonrosefulbright.com

 

  (B) Any notice required under Article 1 shall be delivered in the manner described by paragraph (A) of this Section 9.8 when delivered to:

 

  (i) If to LINN, then to:

Linn Operating, Inc.

600 Travis Street

Houston, Texas 77002

Attn: Jamin McNeil

Phone: 281-840-4000

E-mail: 281-840-4000

with copies (which shall not constitute notice) to:

Linn Operating, Inc.

600 Travis Street

Houston, Texas 77002

Attn: General Counsel

Phone: (281) 840-4000

E-mail: cwells@linnenergy.com

 

  (ii) If to Berry:

Berry Petroleum Company, LLC

5201 Truxtun Avenue, Suite 100

Bakersfield, California 93309

Attn: Arthur T. Smith, Chief Executive Officer

Phone: (214) 384-3966

E-mail: tsmith@bry.com

 

34


with a copy (which shall not constitute notice) to:

Norton Rose Fulbright US LLP

1301 McKinney, Suite 5100

Houston, Texas 77010-3095

Attn: John G. Mauel, Partner

Phone: (713) 651-5173

E-mail: john.mauel@nortonrosefulbright.com

 

  9.9 Independent Contractor. LINN shall act solely as independent contractors, and nothing herein shall at any time be construed to create the relationship of employer and employee, partnership, principal and agent, broker or finder, or joint venturers as between Berry and LINN. Except as expressly provided herein, neither Party shall have any right or authority, and shall not attempt to enter into any contract, commitment, or agreement or to incur any debt or liability of any nature, in the name of or on behalf of the other Party.

 

  9.10 No Third Party Beneficiaries. Except as expressly provided herein, nothing in this Agreement shall entitle any Person other than the Parties, the LINN Indemnified Parties, and the Berry Indemnified Parties, or their respective successors and assigns, to any claim, cause of action, remedy, or right of any kind under this Agreement.

 

  9.11 Execution in Counterparts. This Agreement may be executed simultaneously in two or more counterparts (including by means of facsimile or email of a portable document format (pdf) of the signature pages), each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same instrument.

 

  9.12 No Strict Construction. Berry and LINN participated jointly in the negotiation and drafting of this Agreement, and, in the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as jointly drafted by Berry and LINN, and no presumption or burden of proof shall arise favoring or disfavoring either Party by virtue of the authorship of any provision of this Agreement. Without limitation as to the foregoing, no rule of strict construction construing ambiguities against the draftsperson shall be applied against either Party with respect to this Agreement.

 

  9.13 Force Majeure. Continued performance of a portion of the Services may be suspended immediately to the extent such performance is prevented by any event or condition beyond the reasonable control of LINN, including acts of God, fire, labor strike or trade disturbance, war, terrorism, civil commotion, inability to procure labor, unavailability of equipment, compliance in good faith with any Applicable Law (whether or not it later proves to be invalid), or any other cause, whether of the kind specifically enumerated above or otherwise, which is not reasonably within the control of LINN (a “Force Majeure Event”). Upon the occurrence of a Force Majeure Event, LINN shall (i) use all reasonable efforts to

 

35


  mitigate the effect of such Force Majeure Event, (ii) give notice to Berry of the occurrence of the Force Majeure Event giving rise to the suspension and of its nature and anticipated duration, and (iii) during such Force Majeure Event, shall keep Berry reasonably advised of its efforts to overcome such Force Majeure Event.

 

  9.14 Interpretation. Unless otherwise expressly provided in this Agreement, for purposes of this Agreement, the following rules of interpretation shall apply:

 

  (i) Calculation of Time Period. When calculating the period of time before which, within which, or following which any act is to be done or step taken pursuant to this Agreement, the date that is the reference date in calculating such period shall be excluded, and if the last day of such period is a day other than a Business Day, then the period in question shall end on the next succeeding Business Day;

 

  (ii) Dollars. Any reference in this Agreement to $ means United States dollars;

 

  (iii) Exhibits and Schedules. All Exhibits and Schedules attached or annexed hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein, and any capitalized terms used in any Exhibit or Schedule but not otherwise defined therein shall be defined as set forth in this Agreement;

 

  (iv) Gender and Number. Any reference in this Agreement to gender includes all genders, and words imparting the singular number only include the plural and vice versa;

 

  (v) Headings. The division of this Agreement into Articles, Sections, and other subdivisions and the insertion of headings are for convenience of reference only and shall not affect or be utilized in the construction or interpretation of this Agreement, and all references in this Agreement to any “Section” or “Article” are to the corresponding Section or Article of this Agreement unless otherwise specified;

 

  (vi) Herein. Words such as “herein,” “hereof,” and “hereunder” refer to this Agreement as a whole and not merely to a subdivision in which such words appear, unless the context otherwise requires;

 

  (vii) Including. The word “including” or any variation thereof means “including, without limitation,” and shall not be construed to limit any general statement that it follows to the specific or similar items or matters immediately following it; and

 

36


  (viii) Statute. Unless otherwise specified, references to a statute means such statute as amended from time to time and includes any successor legislation thereto and any rules or regulations promulgated thereunder.

 

  9.15 Specific Performance. The Parties agree that irreparable damage would occur if any provision of this Agreement is not performed in accordance with the terms hereof, including if LINN fails to perform the Services or to take any other action required of it hereunder, and that the Parties shall be entitled to an injunction or injunctions without proof of damages or posting a bond or other security to prevent breaches of this Agreement or to enforce specifically the performance of the terms and provisions hereof, in addition to any other remedy to which they are entitled under Applicable Law or in equity. Unless otherwise expressly stated in this Agreement, no right or remedy described or provided in this Agreement is intended to be exclusive or to preclude a Party from pursuing other rights and remedies to the extent available under this Agreement, under Applicable Law or in equity. The right of specific performance and other equitable relief is an integral part of the transactions contemplated by this Agreement and without that right, neither LINN nor Berry would have entered into this Agreement.

 

  9.16 Confidentiality. The terms of this Agreement and any information obtained pursuant to this Agreement shall be kept confidential by the Parties, except (i) disclosure of matters that become a matter of public record as a result of the bankruptcy case referenced in the Recitals and the filings related thereto, (ii) to the extent required by Applicable Law, (iii) to the extent that this Agreement is the subject of an action for enforcement of its terms or for the breach thereof, or (iv) to the extent that disclosure of this Agreement is required by a court of law. In the event that disclosure as described in the preceding clause (iv) is sought, the Party from whom it is sought shall immediately notify the other Party, and shall diligently pursue protection of the confidentiality of the information sought to be disclosed through objections to disclosure, motions for protective orders and other protections provided by rule of Applicable Law.

 

  9.17 Joint and Several Liability. Each of LOI, LM, Linn Energy, LC, LEF, LEH, LE&PM, LEM, LME, MC-I, MC-II, MCH-I and MCH-II shall be collectively responsible for, and shall have joint and several liability under this Agreement with respect to, the obligations of LINN under this Agreement.

 

  9.18 Expenses. Other than as expressly set forth in this Agreement, the Parties shall bear their own respective expenses (including all compensation and expenses of counsel, financial advisors, consultants, actuaries and independent accountants) incurred in connection with this Agreement and the transactions contemplated hereby.

[Signature Page Follows]

 

37


IN WITNESS WHEREOF, the undersigned representatives of each of the Parties has executed this Agreement on the date first above written to be effective for all purposes as of the Effective Date.

 

Berry:
BERRY PETROLEUM COMPANY, LLC
By:   /s/ Arthur T. Smith
Name:   Arthur T. Smith
Title:   Chief Executive Officer
LINN:
LINN OPERATING, INC.
[REVIEWED LEGAL]
By:   /s/ Arden L. Walker, Jr.
Name:   Arden L. Walker, Jr.
Title:  

Executive Vice President and Chief

Operating Officer

LINN MIDSTREAM, LLC
[REVIEWED LEGAL]
By:   /s/ Arden L. Walker, Jr.
Name:   Arden L. Walker, Jr.
Title:  

Executive Vice President and Chief

Operating Officer

LINN ENERGY, LLC
[REVIEWED LEGAL]
By:   /s/ Arden L. Walker, Jr.
Name:   Arden L. Walker, Jr.
Title:  

Executive Vice President and Chief

Operating Officer

LINNCO, LLC
[REVIEWED LEGAL]
By:   /s/ Arden L. Walker, Jr.
Name:   Arden L. Walker, Jr.
Title:  

Executive Vice President and Chief

Operating Officer

 

38


LINN ENERGY FINANCE CORP.
[REVIEWED LEGAL]
By:   /s/ Arden L. Walker, Jr.
Name:   Arden L. Walker, Jr.
Title:  

Executive Vice President and Chief

Operating Officer

LINN EXPLORATION & PRODUCTION MICHIGAN LLC
[REVIEWED LEGAL]
By:   /s/ Arden L. Walker, Jr.
Name:   Arden L. Walker, Jr.
Title:  

Executive Vice President and Chief

Operating Officer

LINN EXPLORATION MIDCONTINENT, LLC
[REVIEWED LEGAL]
By:   /s/ Arden L. Walker, Jr.
Name:   Arden L. Walker, Jr.
Title:  

Executive Vice President and Chief

Operating Officer

LINN MIDWEST ENERGY LLC
[REVIEWED LEGAL]
By:   /s/ Arden L. Walker, Jr.
Name:   Arden L. Walker, Jr.
Title:   Executive Vice President and Chief
  Operating Officer
MID-CONTINENT I, LLC
[REVIEWED LEGAL]
By:   /s/ Arden L. Walker, Jr.
Name:   Arden L. Walker, Jr.
Title:  

Executive Vice President and Chief

Operating Officer

 

39


MID-CONTINENT II, LLC
[REVIEWED LEGAL]
By:   /s/ Arden L. Walker, Jr.
Name:   Arden L. Walker, Jr.
Title:  

Executive Vice President and Chief

Operating Officer

MID-CONTINENT HOLDINGS I, LLC
[REVIEWED LEGAL]
By:   /s/ Arden L. Walker, Jr.
Name:   Arden L. Walker, Jr.
Title:  

Executive Vice President and Chief

Operating Officer

MID-CONTINENT HOLDINGS II, LLC
[REVIEWED LEGAL]
By:   /s/ Arden L. Walker, Jr.
Name:   Arden L. Walker, Jr.
Title:  

Executive Vice President and Chief

Operating Officer

LINN ENERGY HOLDINGS, LLC
[REVIEWED LEGAL]
By:   /s/ Arden L. Walker, Jr.
Name:   Arden L. Walker, Jr.
Title:  

Executive Vice President and Chief

Operating Officer

 

40


Exhibit A

DEFINITIONS

AAA” means the American Arbitration Association.

Access Period” shall have the meaning ascribed to it in Section 4.1.

Accounting Period” means the Transition Period (as the same may be extended pursuant to Section 2.9) through the date that is the last day of the second full calendar month thereafter.

AFE” shall have the meaning ascribed to it in Section 1.2.

Affiliate” means, with respect to any Person, any other Person that directly or indirectly (through one or more intermediaries) Controls, is Controlled by, or is under common Control with, such specified Person.

Agreement” shall have the meaning ascribed to it in the Preamble.

Applicable Law” means any applicable principle of common law, statute, law, rule, regulation, ordinance, order, code, ruling, writ, injunction, decree or other official act of or by any Governmental Authority.

Assigned Operating Contract” shall have the meaning ascribed to it in paragraph (C) of Section 3.2.

Available Employee” means any employee listed on Schedule 6.

Berry” shall have the meaning ascribed to it in the Preamble.

Berry Assets” shall have the meaning ascribed to it in paragraph (B) of Section 3.1.

Berry Consensual Plan” shall have the meaning ascribed to it in the Recitals.

Berry Contracts” shall have the meaning ascribed to it in clause (v) of paragraph (C) of Section 3.1.

Berry Employee” means any employee designated as a “Berry Employee” on Schedule 6.

Berry Equipment” shall have the meaning ascribed to it in clause (ii) of paragraph (C) of Section 3.1.

Berry Estate” shall have the meaning given to the term “Berry Debtors’ Estate” in the LINN Consensual Plan.

 

Exhibit A, Page 1


Berry Facilities” shall have the meaning ascribed to it in clause (iv) of paragraph (B) of Section 3.1.

Berry G&G Data” shall have the meaning ascribed to it in clause (vi) of paragraph (C) of Section 3.1.

Berry Indemnified Parties” shall have the meaning ascribed to it in paragraph (A) of Section 6.2.

Berry Leasehold and Mineral Interests” shall have the meaning ascribed to it in clause (i) of paragraph (B) of Section 3.1.

Berry-LINN Employee” means any employee designated as a “Berry-LINN Employee” on Schedule 6.

Berry Operating Contracts” shall have the meaning ascribed to it in paragraph (A) of Section 3.2.

Berry Operating Equipment” shall have the meaning ascribed to it in paragraph (A) of Section 3.5.

Berry Operating Property” shall have the meaning ascribed to it in paragraph (A) of Section 3.5.

Berry Operating Yard Equipment” shall have the meaning ascribed to it in paragraph (A) of Section 3.5.

Berry Permits” shall have the meaning ascribed to it in clause (iv) of paragraph (C) of Section 3.1.

Berry Properties” shall have the meaning ascribed to it in clause (ii) of paragraph (B) of Section 3.1.

Berry Receivables” means all expenditures incurred by Berry (or LINN or its Affiliate on behalf of Berry) in connection with the ownership, operation and maintenance of the Berry Properties (including rentals, overhead, royalties, Lease option and extension payments, Taxes and other charges and expenses billed under applicable operating agreements or governmental statute(s)) and billed by Berry (or LINN or its Affiliate on behalf of Berry) to Third Party working interest owners, which remain outstanding and owed to Berry (or LINN or its Affiliate on behalf of Berry);

Berry Records” shall have the meaning ascribed to it in clause (ix) of paragraph C of Section 3.1.

Berry Related Assets shall have the meaning ascribed to it in paragraph C of Section 3.1.

Berry Severance Fees” shall have the meaning ascribed to it in Section 4.3.

 

Exhibit A, Page 2


“Berry Shared Contracts” shall have the meaning ascribed to it in paragraph (A) of Section 3.2.

“Berry Software” shall have the meaning ascribed to it in clause (xii) of paragraph (C) of Section 3.1.

“Berry Statement of Assets and Liabilities” shall have the meaning ascribed to it in the Recitals.

“Berry Wells” shall have the meaning ascribed to it in clause (ii) of paragraph (B) of Section 3.1.

“Business Day” means any day, other than Saturday or Sunday, on which commercial banks are open for commercial business with the public in the state(s) in which the Berry Assets are located and Houston, Texas.

“Cash Call” shall have the meaning ascribed to it in paragraph (A) of Section 5.3.

“Change of Operator Forms” shall have the meaning ascribed to it in clause (i) of Section 3.3.

“Claim” means any claim, demand, liability, suit, cause of action (whether in contract, tort otherwise), loss, cost, and expense of every kind and character.

“Contract” means any agreement, contract, obligation, promise or undertaking (other than a Lease or other instrument creating or evidencing an interest in the Berry Properties) related to or used in connection with the operations of any Berry Properties that is legally binding.

“Control” means the ability (directly or indirectly through one or more intermediaries) to direct or cause the direction of the management or affairs of a Person, whether through the ownership of voting interests, by contract or otherwise.

“COPAS” shall mean the Council of Petroleum Accountants Societies, Inc.

“Current Month Settlement” shall have the meaning ascribed to it in Section 5.4.

“Dispute” shall have the meaning ascribed to it in Section 8.1.

“Effective Date” shall have the meaning ascribed to it in the Berry Consensual Plan.

“Excluded LINN Records and Data” means (a) the general corporate files and records of LINN and its non-Berry Affiliates, insofar as they relate to the business of LINN or its non-Berry Affiliate generally and are not required for the future ownership or operation of the Berry Assets; (b) all legal files and records (other than title opinions) other than legal files directly related to Claims associated with Berry or the Berry Assets; (c) federal or state income, franchise or margin tax files and records of LINN or its non-Berry Affiliates; (d) employee files (other than any employee files for Available Employees hired by Berry pursuant to Article 4 that may

 

Exhibit A, Page 3


be transferred to Berry without violating Applicable Law); (e) reserve evaluation information or economic projections other than those related specifically to the Berry Assets; (f) records relating to the sale of the Berry Assets, including competing bids (g) proprietary data, information and data under contractual restrictions on assignment or disclosure for which no consent has been given; (h) privileged information (other than title opinions) and (i) any other files or records to the extent relating solely to any property or activities of LINN or its non-Berry affiliates.

Final Settlement Statement” shall have the meaning ascribed to it in Section 5.8.

Force Majeure Event” shall have the meaning ascribed to it in Section 9.13.

Full Management Fee” shall have the meaning ascribed to it in paragraph (B) of Section 5.2.

Governmental Authority” means any court or tribunal (including an arbitrator or arbitral panel) in any jurisdiction (domestic or foreign) or any federal, tribal, state, county, municipal or other governmental or quasi-governmental body, agency, authority, department, board, commission, bureau, official or other authority or instrumentality.

Hill Field Offices” shall have the meaning ascribed to it in clause (i) of paragraph (C) of Section 3.1.

Hugoton Field Offices” means the real property described on Schedule 11 and all field offices located thereon.

Hydrocarbons” means oil, gas, minerals, and other gaseous and liquid hydrocarbons, or any combination of the foregoing, produced from and attributable to the Berry Properties.

Independent Expert” shall have the meaning ascribed to it in paragraph (A) of Section 8.3.

Lease” means any oil and gas lease, oil, gas and mineral lease or sublease, or other leasehold interest, and the leasehold estates created thereby, including carried interests, rights of recoupment, options, reversionary interests, convertible interests and rights to reassignment.

Leasehold Interest” means, with respect to a Lease, a working or other interest in and to such Lease.

LC” shall have the meaning ascribed to it in the Preamble.

LEF” shall have the meaning ascribed to it in the Preamble.

LEH” shall have the meaning ascribed to it in the Preamble.

LEM” shall have the meaning ascribed to it in the Preamble.

LE&PM” shall have the meaning ascribed to it in the Preamble.

Letters in Lieu” shall have the meaning ascribed to it in clause (ii) of Section 3.3.

 

Exhibit A, Page 4


Liabilities” means any and all claims, rights, demands, causes of action, liabilities, obligations, damages, losses, fines, penalties, sanctions of every kind and character (including reasonable fees and expenses of attorneys, technical experts and expert witnesses), judgments or proceedings of any kind or character whatsoever, whether known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated or unliquidated, or due or to become due, and whether arising or founded in Applicable Law or voluntary settlement, and all reasonable expenses, costs and fees (including reasonable attorneys’ fees) in connection therewith.

Limited Management Fee” shall have the meaning ascribed to it in paragraph (B) of Section 5.2.

LINN” shall have the meaning ascribed to it in the Preamble.

LINN Consensual Plan” shall have the meaning ascribed to it in the Recitals.

LINN Estate” shall have the meaning given to the term “Linn Debtors’ Estate” in the LINN Consensual Plan.

Linn Energy” shall have the meaning ascribed to it in the Preamble.

LINN Indemnified Parties” shall mean LINN and its Affiliates, and its and their equity holders, directors, officers, employees, consultants, accountants, counsel, advisors, and agents.

LM” shall have the meaning ascribed to it in the Preamble.

LME” shall have the meaning ascribed to it in the Preamble.

LOI” shall have the meaning ascribed to it in the Preamble.

Management Fee” shall have the meaning ascribed to it in paragraph (B) of Section 5.2.

MC-I” shall have the meaning ascribed to it in the Preamble.

MC-II” shall have the meaning ascribed to it in the Preamble.

MCH-I” shall have the meaning ascribed to it in the Preamble.

MCH-II” shall have the meaning ascribed to it in the Preamble.

Mineral Interest” means any mineral fee interest, mineral right or mineral servitude, including non-participating royalty interests and other rights of a similar nature, whether legal or equitable, whether vested or contingent.

Mirrored Licenses” shall have the meaning ascribed to it in paragraph (B) of Section 1.13.

Monthly Settlement Statement” shall have the meaning ascribed to it in Section 5.4.

 

Exhibit A, Page 5


Monthly Statement” shall have the meaning ascribed to it in Section 1.11.

New Production Environment” shall have the meaning ascribed to it in Section 1.13(B) of Exhibit B.

Non-Operated Berry Properties” shall mean the portion of the Berry Properties currently operated by a Third Party or operated by LINN as an agent for a Person other than Berry, as so identified on Schedule 1 and Schedule 2 (which Non-Operated Berry Properties include the Hugoton properties and do not include the Hill properties).

Non-Party Affiliate” shall have the meaning ascribed to it in Section 9.5.

Offer Period” shall have the meaning ascribed to it in Section 4.2.

Operated Berry Properties” shall mean that portion of the Berry Properties currently operated by LINN as agent for Berry, as so identified on Schedule 1 and Schedule 2 (which Operated Berry Properties include the Hill properties and do not include the Hugoton properties).

Operating Property Amount” shall have the meaning ascribed to it in paragraph (C) of Section 3.5.

Party” or “Parties” shall have the meaning ascribed to it in the Preamble.

Person” means any individual, corporation (including any non-profit corporation), partnership, limited liability company, joint venture, estate, trust, association, organization or other entity or Governmental Authority.

Reference Period” shall have the meaning ascribed to it in Section 1.

Reimbursement Expenses” shall have the meaning ascribed to it in paragraph (A) of Section 5.2.

Representatives” shall mean LINN’s existing personnel, including its current employees, contractors, attorneys, agents, representatives, and consultants.

Rules” shall have the meaning ascribed to it in paragraph (A) of Section 8.3.

Separation Period” means the period between the first day following the Transition Period (as the same may be extended pursuant to Section 2.9) and the end of the Accounting Period.

Service Fees” shall have the meaning ascribed to it in paragraph (B) of Section 5.2.

Services” shall have the meaning ascribed to it in Section 1.

Surface Rights” means all surface leases, subsurface leases, rights-of-way, licenses, easements and other surface or subsurface rights agreements applicable to, used, or held in connection with the ownership, operation, maintenance or repair of, or the production, gathering, treatment, processing, storing, sale or disposal of Hydrocarbons or produced water from, the Berry Properties, together with all surface fee interests in the lands covered by the Berry Leasehold and Mineral Interests.

 

Exhibit A, Page 6


Suspense Funds” means proceeds of production and associated penalties and interest in respect of any of the Operated Berry Properties that are payable to Third Parties and are being held in suspense by LINN as the operator of such Operated Berry Properties.

Term” shall have the meaning ascribed to it in paragraph (A) of Section 5.1.

Third Party” means any Person other than Berry or LINN or any of their Affiliates.

Transferred Hardware” means the equipment described on Schedule 8, unless Berry notifies LINN in writing within 30 days after the Effective Date that Berry does not want one or more items on Schedule 8 to be included as Transferred Hardware.

Transition JIB Balance” shall have the meaning ascribed to it in Section 5.6.

Transition Period” means the period from the Effective Date through the date that is the last day of the second full calendar month after the Effective Date (as the same may be extended pursuant to Section 2.9).

Vehicles” shall have the meaning ascribed to it in clause (xiv) of paragraph (C) of Section 3.1.

 

Exhibit A, Page 7


Exhibit B

SERVICES

 

#

  

Service

  

General Description

1.1    Operator Services   

•  Manage and oversee day-to-day operation of the Operated Berry Properties, including operation and management of existing wells, structures, equipment, and facilities

     

•  Supervise personnel, subcontractors, suppliers, vendors, etc.

     

•  Monitor production and prepare and submit any necessary forms or reports as required by regulatory agencies

     

•  Dispose of all salt water and waste materials

     

•  Perform field operations

     

•  Account for and disburse production (limited to the production of Hydrocarbons from the Berry Assets prior to the end of the Transition Period)

     

•  Administer the Suspense Funds; provided, however, that Berry will assume the Suspense Funds (including any escheatment obligations related thereto) as of the first day following the Transition Period; provided, however, further, that prior to the end of the Transition Period, LINN will provide, or cause to be provided, any and all documentation in LINN’s possession necessary for Berry to administer the Suspense Funds following the end of the Transition Period

1.2    Non-Operator Services   

•  Monitor operation of the Non-Operated Berry Properties

     

•  Collect revenues on behalf of Berry

     

•  Review operating expense statements; request additional information from, and address any concerns with, the Third Party operators (if necessary); and pay applicable operating expenses

     

•  Process non-operated joint interest billing invoices

1.3    Permits   

•  Maintain all Permits

     

•  Take reasonable action necessary to transfer or assign all Berry Permits held in the name of LINN, contingent upon Berry’s

 

Exhibit B, Page 1


#

  

Service

  

General Description

      obligations described in Sections 1.3 and paragraph (A) of 3.4)
1.4    Transportation and Marketing   

•  Manage (or, if applicable, oversee provision by a Third Party approved by Berry of) midstream services, transportation and marketing services, gas control services, and other similar services to physically and financially sell the production from the Operated Berry Properties

1.5    Well Maintenance   

•  Provide supervision for all workover operations, recompletion operations, and any type of remedial operation or well service operation with respect to the Operated Berry Properties

     

•  Contract with supervisory personnel for onsite supervision as required (but in no event will LINN be required to add contract onsite supervision above the level of supervision currently provided)

     

•  Establish and maintain well files containing information on operations performed in connection with each such well

1.6    Payment Services   

•  Pay lease rentals, shut-in royalties, minimum royalties, payments in lieu of production, royalties, overriding royalties, production payments, net profit payments, and other similar payments associated with the Operated Berry Properties; provided, however, that, in the case of payments related to production from the Operated Berry Properties other than shut-in payments during the Term, these obligations shall be limited to payment obligations arising from production from the Operated Berry Properties prior to the end of the Transition Period

     

•  Pay operating costs and invoices that are required to be paid under the terms and provisions of the applicable agreements and which are attributable to the ownership, operation, use, or maintenance of the Berry Properties

1.7    Lease and Land Administration   

•  Provide all land, land administration, lease, and title services with respect to the Berry Properties, in each case in the ordinary course of LINN’s business and in no case requiring additional services beyond those currently performed by LINN, including:

     

•  Administer all leases and agreements relating to the Berry Properties

     

•  Maintain and update all lease, ownership, contract and property records and databases relating to the Berry Properties through changes received at the end of the second calendar month following the Effective Date to the extent practicable

 

Exhibit B, Page 2


#

  

Service

  

General Description

     

•  Generate, verify, process, approve and sign (provided that Berry has provided LINN a special power of attorney authorizing LINN to sign on Berry’s behalf) all internal and external division orders and transfer orders required in the normal course of business

     

•  Identify, pay and appropriately invoice all rentals, surface, right of way, shut-in and other similar payments required by the leases or other agreements relating to the Berry Properties

     

•  Maintain all land, contract, division of interest, lease files, and other files relating to the subject lands, lease and land administration functions

     

•  Maintain and update all royalty and suspense accounts, reports and databases

     

•  Perform such other reasonable and customary administrative services as LINN administers or causes to be administered to maintain the leases or agreements relating to the Berry Properties in the ordinary course of its business

1.8    Regulatory Affairs   

•  Provide services to comply with all regulatory requirements applicable to the Berry Properties

     

•  Prepare all federal, state, regulatory and other monthly production reports related to production of Hydrocarbons from the Berry Properties prior to the end of the Transition Period; copies of said reports will be provided to Berry

     

•  Maintain incident management reporting processes in LINN’s ordinary course of business and maintain all existing safety practices, which could include all or any of the following: internal reports, OSHA filings, safety standard operating procedures (SOPs), emergency response protocols, chemical exposure and hearing testing, drug and alcohol programs, incident follow-up and other activities to provide health and safety training; provided, however, that nothing herein will require LINN to adopt new practices or change its existing practices

1.9    Plugging and   

•  Obtain necessary non-operated working interest owner approval and regulatory permits to abandon any wells included in the

 

Exhibit B, Page 3


#

  

Service

  

General Description

   Abandonment   

Operated Berry Properties when required by applicable law to be abandoned during the Transition Period

     

•  Provide supervision for abandonment operations and file all necessary abandonment reports after the completion of the abandonment operations

1.10    Environmental Compliance   

•  If LINN discovers instances of non-compliance with environmental, health, or safety laws, rules, or regulations, notify Berry of such non-compliance

     

•  [insert any reviews, audits or other queries required to be undertaken during the Transition Period as referenced in Section 1.10]

1.11    Bookkeeping; Finance and Treasury; Accounting   

•  Assist with internal reporting, management of general ledger functions, asset and real property accounting, treasury and financial management services, maintenance of capital expenditure, and other operating budgets for production from the Berry Properties prior to the conclusion of Transition Period

     

•  Monthly net lease operating statement reporting, including reasonable volume, pricing, revenue, and expense supporting detail on the 15th day after each month end during the Accounting Period

     

•  Production and regulatory reporting related to the Berry Properties (limited to reporting related to the Berry Properties or production from the Berry Properties prior to the conclusion of the Transition Period)

     

•  Prepare joint interest accounting and billings associated with the Berry Properties for periods prior to the end of the Transition Period

     

•  Perform AFE tracking and status reporting relating to the Berry Properties during the Transition Period

     

•  Perform gas balancing relating to the Berry Properties for periods and related to production prior to the end of the Transition Period

     

•  Perform working interest and royalty owner disbursements for production from the Berry Properties prior to the end of the Transition Period

     

•  Provide collection of accounts receivable associated with the Berry

 

Exhibit B, Page 4


#

  

Service

  

General Description

     

Properties relative only to periods and production prior to the end of the Transition Period

     

•  Provide any reports currently prepared in the ordinary course of LINN’s business related to the Berry Properties that are practicably segregated to the Berry Properties in generally the same manner and timing as currently prepared by LINN; provided that in the case of reports related to payments for production of hydrocarbons, such reports will be limited to production from the Berry Properties prior to the end of the Transition Period

     

•  Calculate, file, and remit severances taxes associated with the production from the Berry Properties prior to the end of the Transition Period

     

•  Provide production accounting services associated with the Berry Properties for production from the Berry Properties prior to the end of the Transition Period

     

•  Provide revenue accounting services related to the Berry Properties for production from the Berry Properties prior to the end of the Transition Period

     

•  Provide audit function support services associated with the Berry Properties related to periods or production prior to the end of the Transition Period, limited to responsive audits and excluding any audit initiated by Berry

     

•  Process joint interest billings associated with the Non-Operated Berry Properties related to periods prior to the end of the Transition Period

     

•  Provide payout accounting services associated with the Berry Properties related to periods prior to the end of the Transition Period

1.12    Real Estate; Facilities   

•  Manage all real estate and facilities that are part of the Berry Estate in connection with the operation of the Berry Properties

 

Exhibit B, Page 5


#

  

Service

  

General Description

1.13(A) Part One    Information Technology Systems – Standard Term Support During Transition Period   

•  Provide IT-related infrastructure (hardware, software, network, security, etc.), technical expertise, and services necessary to maintain the operations of the Berry Properties

 

•  Provide consultation regarding the migration to Berry’s information systems in respect to operation of the Berry Properties

1.13(A) Part Two    Information Technology Systems – Standard Term Support During Accounting Period   

•  Provide IT data from LINN systems in their native or export format

 

•  Provide continuing e-mail services for LINN employees performing Services under this Agreement

 

•  Provide extraction of Berry Asset related application data and transmittal of this data to Berry in their native or export format

1.13(B)    Information Technology Systems - Optional Additional Support   

•  Create a copy of the database(s) in existing Transferred Hardware environment, specifically related to P2 and field view (the “New Production Environment”)

 

•  Provide limited access to no more than [three] of Berry’s personnel to the New Production Environment for the limited purposes of (i) configuring the New Production Environment, (ii) loading Berry Asset related data provided by LINN under Section 1.13(A) of this Exhibit B to the New Production Environment, and (iii) creating user security permissions for New Production Environment

1.14    Tax   

•  Assist with, and maintain proper documentation for, the collection and remittance of federal, state, and local sales, use, and ad valorem taxes

     

•  Prepare and distribute 1099 forms for owners for all activity for the time period LINN is responsible for the related distributions and disbursements

1.15    Corporate Contracts   

•  Perform, administer, and maintain existing contractual arrangements with respect to the Berry Assets and the Services performed hereunder

1.16    Records Retention   

•  Provide necessary assistance in the storage and retrieval of documentation and backup information to the extent related to the Berry Assets and the Services performed hereunder

     

•  Provide, upon request from Berry, any portion of Records not

 

Exhibit B, Page 6


#

  

Service

  

General Description

     

already provided, including but not limited to financial information from prior periods (to the extent such information requested exists in LINN’s financial reporting system and to the extent such information is included within the definition of Records)

     

•  Provide other types of historical data to Berry as reasonably needed in connection with Berry’s audit and tax compliance activities, government reporting, or other Third Party inquiries

1.17    Transition   

•  Cooperate and assist in transition to Berry of Services provided by LINN under this Agreement

 

•  Provide data and information (e.g., accounting, division of interest, land data, production data, etc.) utilized by LINN in connection with this Agreement

 

•  Provide the information that is available to LINN for Berry to begin revenue distribution, joint interest billings, and payment of capital and operating expenses, taxes, shut-in payments, etc., in each case to the extent related to the Berry Properties

1.18    HR; Employee Benefits; Payroll   

•  Continue to perform administration and management of human resources, employee benefits programs, and payroll services and function for LINN’s employees and independent contractors

 

•  Comply with workers compensation laws and carry and maintain other customary insurance

 

Exhibit B, Page 7


Exhibit C

FORM OF SETTLEMENT STATEMENT

FOR THE PERIOD (MONTHLY DURING TRANSITION PERIOD)

CALCULATION OF CASH TRANSFERRED:

 

Net revenues (as per paragraph (i) of Section 5.4)

   $  XXX  

less direct operating expenses

     XXX  

(as per paragraph (ii) of Section 5.4)

  

plus COPAS recoveries

     XXX  

(as per paragraph (iii) of Section 5.4)

  

less capital expenditures

     XXX  

(as per paragraph (iv) of Section 5.4)

  

less bonus, lease rentals, shut-in payments, and other charges

     XXX  

(as per paragraph (v) of Section 5.4)

  

less Reimbursement Expenses

     XXX  

(as per paragraph (A) of Section 5.2)

  

less Management Fee

     XXX  

(as per paragraph (B) of Section 5.2)

  

less unpaid amounts due under Section 5.2

     XXX  

(as per paragraph (viii) of Section 5.4)

  

less Berry Severance Fee

     XXX  

(as per Section 4.3)

  

plus or less Other (itemized)

     XXX  

(as per paragraph (xi) of Section 5.4)

  
  

 

 

 

CURRENT MONTH SETTLEMENT

   $ XXX  
  

 

 

 

 

Exhibit C, Page 1


Exhibit D

BERRY INSURANCE COVERAGE

[EXHIBIT FOLLOWS]

 

Exhibit D, Page 1


EXHIBIT D

Berry’s Insurance Coverage

 

1) Worker’s Compensation covering statutory liability as an employer under applicable state and federal laws; provided such insurance is only required at the time Berry directly employees any Person, including but not limited to the Available Employees.

 

2) All-Risk Property Insurance covering all risk of direct physical loss or physical damage to or of the Berry Assets.

 

3) Commercial General Liability in the amount of $1,000,000 per occurrence covering third party liability arising out of premises and operations.

 

4) Commercial Automobile Liability in the amount of $1,000,000 per occurrence covering third party liabilities arising out of the use of owned and non-owned automobiles.

 

5) Energy, Exploration and Development Insurance covering expenses to control a well out of control, necessary redrill and restoration following blowout, and expenses to clean-up resultant pollution.

 

6) Excess Liability in the amount of $10,000,000 per occurrence covering excess third party liabilities over 2), 3), 4) and 5.


Exhibit E

MIRRORED LICENSES

[EXHIBIT FOLLOWS]

 

 

Exhibit E, Page 1


Exhibit E Mirrored Licenses

 

Application

  

Vendor

  

Use/Purpose

OpenInvoice    Oildex    Accounting - AP Invoice
Oracle - EBS    Oracle    Accounting - Fin Reporting
P2 Enterprise Upstream    P2    Accounting - Production
Oracle -Version 11G    Oracle    Database/Reporting
Oracle Golden Gate    Oracle    Database/Reporting
Hyperion/Essbase    Oracle    BI/Reporting
SQL Server    MicroSoft    Database/Reporting
Autocad    CDW    Design
Aries    Landmark Graphics - Halliburton    Economics
Rodstar & XSPOC    Theta Oilfield Services Inc    Engineering
ManagerPlus    ManagerPlus    Facility Management
Microsoft - Desktop OS - Win 7 and 10    MicroSoft    General Use
Microsoft - Office 2010 -2016    MicroSoft    General Use
OFM    Schlumberger    Prod Surveillance
Petrel    Schlumberger    Geo Modelling
Petra    I.H.S.    Geological Interp & Mapping
Citrix    Citrix    IT - Infrastructure
CommVault    CommVault    IT - Infrastructure
Sanplicity - Berry SAN    Dell    IT - Infrastructure
TOAD    Dell    IT - Infrastructure
VMWare    CDW/VMWare    IT - Infrastructure
QLS    Quorum Business Solutions    Land
eRequester    Paperless Busienss    PO System
Crystal Ball    Oracle    Predictive Modelling
FieldVision    Stroud Technology    Production
OVS - DiSECT    OVS    Production
OSIPI    OSI Soft    Real time and Predictive Data
Builder/IMEX    CMG    Reservoir Simulation
WellView & SiteView    Peloton Computer Enterprises    Well Driing/Workover Data


Exhibit F

BILL OF SALE

[EXHIBIT FOLLOWS]

 

Exhibit F, Page 1


Exhibit F

ASSIGNMENT AND BILL OF SALE

This ASSIGNMENT AND BILL OF SALE (the “Assignment”) from Linn Operating, Inc., a Delaware corporation (“LOI”), Linn Midstream, LLC, a Delaware limited liability company (“LM”), Linn Energy, LLC, a Delaware limited liability company (“Linn Energy”), LinnCo, LLC, a Delaware limited liability company (“LC”), Linn Energy Finance Corp., a Delaware corporation (“LEF”), Linn Energy Holdings, LLC, a Delaware limited liability company (“LEH”), Linn Exploration & Production Michigan LLC, a Delaware limited liability company (“LE&PM”), Linn Exploration Midcontinent, LLC, a Delaware limited liability company (“LEM”), Linn Midwest Energy LLC, a Delaware limited liability company (“LME”), Mid-Continent I, LLC, a Delaware limited liability company (“MC-I”), Mid-Continent II, LLC, a Delaware limited liability company (“MC-II”), Mid-Continent Holdings I, LLC, a Delaware limited liability company (“MCH-I”), Mid-Continent Holdings II, LLC, a Delaware limited liability company (“MCH-II”) (LOI, LM, Linn Energy, LC, LEF, LEH, LE&PM, LEM, LME, MC-I, MC-II, MCH-I and MCH-II are referred to in this Agreement collectively as “Assignor”; provided, however, that with respect to particular uses of the term in this Agreement, “Assignor” shall mean each, any or all of LOI, LM, Linn Energy, LC, LEF, LEH, LE&PM, LEM, LME, MC-I, MC-II, MCH-I and MCH-II as applicable to the context of such use) to Berry Petroleum Company, LLC, a Delaware limited liability company (“Assignee”), is dated effective this [1st] day of [March], 2017. Assignor and Assignee are each, individually, referred to herein as a “Party” and, collectively, as the “Parties”. Other than any term defined herein, capitalized terms used herein shall have the respective meanings set forth in that certain Transition Services and Separation Agreement dated February 28, 2017, by and between Assignor and Assignee (the “TSSA”).

ARTICLE 1

ASSIGNMENT OF PROPERTIES AND ASSETS

Section 1.1 Assignment. Assignor, for and in consideration of the sum of Ten Dollars ($10) cash and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, hereby grants, bargains, sells, assigns and conveys unto Assignee, and Assignee hereby accepts from Assignor, all of Assignor’s right, title and interest in and to the following:

(a) all Berry Equipment that is part of the LINN Estate (including without limitation all such Berry Equipment described on Exhibit A, the “Berry Operating Equipment”);

(b) all pipes, casing, tubing, tubulars, fittings, and other spare parts, supplies, tools, and materials located on, used or held for use on or held as inventory in connection with the ownership or operation of the Berry Assets that are part of the LINN Estate (including without limitation all such pipes, casing, tubing, tubulars, fittings, and other spare parts, supplies, tools, and materials described on Exhibit B, the “Berry Operating Yard Equipment”);

(c) all of the equipment described on Exhibit C (the “Transferred Hardware”); and

 

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(d) all of the vehicles described on Exhibit D (the “Vehicles”, and together with the Berry Operating Equipment, the Berry Operating Yard Equipment and the Transferred Hardware, the “Berry Operating Property”).

TO HAVE AND TO HOLD the Berry Operating Property unto Assignee, its successors and assigns, forever, subject, however, to the terms and conditions of this Assignment.

ARTICLE 2

DISCLAIMER

Section 2.1 Disclaimer. The equipment and personal property included in the Berry Operating Property is assigned “AS IS, WHERE IS” WITH ALL FAULTS, AND ALL REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF CONDITION, QUALITY, SUITABILITY, DESIGN, MARKETABILITY, TITLE, INFRINGEMENT, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR CONFORMITY TO MODELS OR SAMPLES OF MATERIALS ARE HEREBY DISCLAIMED.

ARTICLE 3

ASSUMPTION OF OBLIGATIONS

Section 3.1 Assumed Obligations. Except as otherwise provided in the TSSA and except for any Liabilities discharged or otherwise released pursuant to or in connection with the Berry Consensual Plan or the LINN Consensual Plan, Assignee assumes and agrees to fulfill, perform, pay and discharge (or cause to be fulfilled, performed, paid or discharged) all of the obligations, expenses and liabilities, known or unknown, arising from, based upon or associated with the Berry Operating Property, including obligations, expenses and liabilities relating in any manner to the use, ownership or operation thereof.

ARTICLE 4

MISCELLANEOUS

Section 4.1 Further Assurances. Assignor and Assignee each agree to take such further actions and to execute, acknowledge and deliver all such further documents as are reasonably requested by the other for carrying out the purposes of this Assignment.

Section 4.2 TSSA. This Assignment is delivered pursuant to, and hereby made subject to, the terms and conditions of the TSSA. In the event that any provision of this Assignment (other than any term defined herein) is construed to conflict with any provision of the TSSA, the provisions of the TSSA (other than with respect to terms defined herein) shall be deemed controlling to the extent of such conflict.

Section 4.3 Successors and Assigns. This Assignment shall inure to the benefit of, and shall be binding upon, the Parties and their respective successors and assigns.

Section 4.4 Titles and Captions. All article or section titles or captions in this Assignment are for convenience only, shall not be deemed part of this Assignment and in no way define, limit, extend or describe the scope or intent of any provisions hereof. Except to the extent otherwise stated in this Assignment, references to “Articles” and “Sections” are to Articles and Sections of this Assignment, and references to “Exhibits” are to Exhibits attached to this Assignment, which are made parts hereof for all purposes.

 

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Section 4.5 Choice of Law. THE PROVISIONS OF THIS ASSIGNMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF. EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF TEXAS OVER ANY SUIT, ACTION, OR PROCEEDING ARISING OUT OF OR RELATING TO THIS ASSIGNMENT.

Section 4.6 Joint and Several Liability. Each of LOI, LM, Linn Energy, LC, LEF, LEH, LE&PM, LEM, LME, MC-I, MC-II, MCH-I and MCH-II shall be collectively responsible for, and shall have joint and several liability under this Assignment with respect to, the obligations of Assignor under this Assignment.

Section 4.7 Counterparts. This Assignment may be executed simultaneously in two or more counterparts (including by means of facsimile or email of a portable document format (pdf) of the signature pages), each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same instrument.

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the authorized representatives of the Parties hereto have executed this Assignment as of date set forth above:

 

  ASSIGNOR:
  LINN OPERATING, INC.

By:

   

Name:

   

Title:

   
 

LINN MIDSTREAM, LLC

By:

   

Name:

   

Title:

   
 

LINN ENERGY, LLC

By:

   

Name:

   

Title:

   
 

LINNCO, LLC

By:

   

Name:

   

Title:

   
 

LINN ENERGY FINANCE CORP.

By:

   

Name:

   

Title:

   
 

LINN EXPLORATION &

 

PRODUCTION MICHIGAN LLC

By:

   

Name:

   

Title:

   

[Signature Page to Assignment]


 

LINN EXPLORATION MIDCONTINENT, LLC

By:

   

Name:

   

Title:

   
 

LINN MIDWEST ENERGY LLC

By:

   

Name:

   

Title:

   
 

MID-CONTINENT I, LLC

By:

   

Name:

   

Title:

   
 

MID-CONTINENT II, LLC

By:

   

Name:

   

Title:

   
 

MID-CONTINENT HOLDINGS I, LLC

By:

   

Name:

   

Title:

   
 

MID-CONTINENT HOLDINGS II, LLC

By:

   

Name:

   

Title:

   


 

LINN ENERGY HOLDINGS, LLC

By:

   

Name:

   

Title:

   


IN WITNESS WHEREOF, the authorized representatives of the Parties hereto have executed this Assignment as of date set forth above:

 

 

ASSIGNEE:

 

BERRY PETROLEUM COMPANY, LLC

By:

   

Name:

   

Title:

   

[Signature Page to Assignment]


Exhibit G

SPECIAL WARRANTY DEED

[EXHIBIT FOLLOWS]

 

Exhibit G, Page 1


Exhibit G

Special Warranty Deed

(Surface Estate)

 

State of   §   
  §   
County of   §   

This Special Warranty Deed (this “Deed”) from Linn Operating, Inc., a Delaware corporation (“LOI”) and Linn Energy Holdings, LLC, a Delaware limited liability company (“LEH” and together with LOI referred to in this Deed collectively as “Grantor”; provided, however, that with respect to particular uses of the term in this Deed, “Grantor” shall mean each, any or all of LOI and LEH as applicable to the context of such use) to Berry Petroleum Company, LLC, a Delaware limited liability company (“Grantee”) whose mailing address is [•], is dated effective this [1st] day of [March], 2017. Grantor and Grantee are each, individually, referred to herein as a “Party” and, collectively, as the “Parties”. Other than any term defined herein, capitalized terms used herein shall have the respective meanings set forth in that certain Transition Services and Separation Agreement dated February 28, 2017, by and between Grantor and Grantee (the “TSSA”).

ARTICLE 1

GRANT

Grantor for and in consideration of the sum of Ten Dollars ($10.00) and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, hereby grants, sells and coveys to the Grantee all of the real property described on Exhibit A attached hereto and made a part hereof for all purposes (the “Property”), SAVE AND EXCEPT. and Grantor hereby reserves and excepts unto itself, all of Grantor’s right, title and interest, if any, in and to the oil, gas, and other minerals in, to, under and that may be produced from the Property. This DEED is MADE AND ACCEPTED SUBJECT TO any oil and gas lease(s); easements and right(s) of way; mineral interests, conveyance(s) or reservation(s); validly existing restrictions, reservations, covenants and conditions; and water interests all as appear of record in Kern County, CA, if any.

TO HAVE AND TO HOLD the Property unto Grantee, its successors and assigns, forever, subject, however, to the terms and conditions of this Deed.

ARTICLE 2

SPECIAL WARRANTY

(a) Grantor hereby binds itself and its successors and assigns to warrant and forever defend all and singular title to the Property unto Grantee against claims arising by, through or under Grantor or its Affiliates, but not otherwise, subject, however, to the Permitted Encumbrances.

(b) “Permitted Encumbrances” means with respect to the Property: (i) liens for taxes for which payment is not due or which are being contested in good faith by appropriate

 

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proceedings; (ii) liens of mechanics, materialmen, warehousemen, landlords, vendors and carriers and any similar liens arising by operation of law which, in each instance, arise in the ordinary course of business for sums not yet due or that are being contested in good faith by appropriate proceedings; (iii) all rights reserved to or vested in any governmental authority to control or regulate such Property in any manner, and all laws, rules and orders of a governmental authority; and (iv) any other encumbrances to which Grantee has agreed to in writing.

ARTICLE 3

DISCLAIMER

EXCEPT AND TO THE LIMITED EXTENT EXPRESSLY SET FORTH IN ARTICLE 2, THE PROPERTY IS BEING ASSIGNED “AS IS, WHERE IS” WITH ALL FAULTS, AND ALL REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF CONDITION, QUALITY, SUITABILITY, DESIGN, MARKETABILITY, TITLE, INFRINGEMENT, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR CONFORMITY TO MODELS OR SAMPLES OF MATERIALS ARE HEREBY DISCLAIMED.

ARTICLE 4

ASSUMPTION OF OBLIGATIONS

Except as otherwise provided in the TSSA and except for any Liabilities discharged or otherwise released pursuant to or in connection with the Berry Consensual Plan or the LINN Consensual Plan, Grantee assumes and agrees to fulfill, perform, pay and discharge (or cause to be fulfilled, performed, paid or discharged) all of the obligations, expenses and liabilities, known or unknown, arising from, based upon or associated with the Property, including obligations, expenses and liabilities relating in any manner to the use, ownership or operation thereof.

ARTICLE 5

RECONVEYANCE OF THE PROPERTIES

The Parties acknowledge and agree that in connection with the TSSA, the Parties have entered into that certain Joint Operating Agreement dated as of February 28, 2017, governing the joint ownership and operation of certain oil and gas assets more particularly described on Exhibit A thereto (the “JOA”). In the event Grantor becomes the “Designated Operator” (as such term is defined in the JOA) pursuant to the JOA, Grantee shall promptly thereafter, on a form substantially the same as this Deed (including, for the avoidance of doubt, the special warranty of title set forth in Article 2), transfer, assign and convey to Grantor all of Grantee’s then-existing right, title and interest in and to the Properties in exchange for One Dollar ($1.00).

ARTICLE 6

MISCELLANEOUS

Section 6.1 Further Assurances. Grantor and Grantee each agree to take such further actions and to execute, acknowledge and deliver all such further documents as are reasonably requested by the other for carrying out the purposes of this Deed.

 

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Section 6.2 TSSA. This Deed is delivered pursuant to, and hereby made subject to, the terms and conditions of the TSSA. In the event that any provision of this Deed (other than any term defined herein) is construed to conflict with any provision of the TSSA, the provisions of the TSSA (other than with respect to terms defined herein) shall be deemed controlling to the extent of such conflict.

Section 6.3 Successors and Assigns. This Deed shall inure to the benefit of, and shall be binding upon, the Parties and their respective successors and assigns.

Section 6.4 Titles and Captions. All article or section titles or captions in this Deed are for convenience only, shall not be deemed part of this Deed and in no way define, limit, extend or describe the scope or intent of any provisions hereof. Except to the extent otherwise stated in this Deed, references to “Articles” and “Sections” are to Articles and Sections of this Deed, and references to “Exhibits” are to Exhibits attached to this Deed, which are made parts hereof for all purposes.

Section 6.5 Choice of Law. THE PROVISIONS OF THIS DEED SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF. EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF TEXAS OVER ANY SUIT, ACTION, OR PROCEEDING ARISING OUT OF OR RELATING TO THIS DEED.

Section 6.6 Joint and Several Liability. Each of LOI and LEH shall be collectively responsible for, and shall have joint and several liability under this Deed with respect to, the obligations of Grantor under this Deed.

Section 6.7 Counterparts. This Deed may be executed simultaneously in two or more counterparts (including by means of facsimile or email of a portable document format (pdf) of the signature pages), each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same instrument.

[Signature Page Follows]

 

3


IN WITNESS WHEREOF, the authorized representatives of the Parties hereto have executed this Deed as of date set forth above:

 

  GRANTOR:
  LINN OPERATING, INC.
By:    
Name:    
Title:    
  LINN ENERGY HOLDINGS, LLC
By:    
Name:    
Title:    

[Signature Page to Deed]


IN WITNESS WHEREOF, the authorized representatives of the Parties hereto have executed this Deed as of date set forth above:

 

 

GRANTEE:

 

BERRY PETROLEUM COMPANY,

LLC

By:    
Name:    
Title:    

[Signature Page to Deed]


Exhibit A

[To come]

[Exhibit A]


Schedule 1

BERRY LEASEHOLD AND MINERAL INTERESTS

Due to size Schedule 1 – Leasehold and Mineral Interests is attached as a USB drive, which duplicates the Schedule 1 – Leasehold

and Mineral Interests via email on February 21, 2017 to John G. Mauel at john.mauel@nortonrosefullbright.com by Kristen

Christensen at kchristensen@linnenergy.com.

 

Schedule 1, Page 1


Schedule 2

BERRY WELLS

Due to size Schedule 2 – Berry Wells is attached as a USB drive, which duplicates the Schedule 2 – Berry Wells via email on

February 23, 2017 to John G. Mauel at john.mauel@nortonrosefullbright.com by Kristen Christensen at

kchristensen@linnenergy.com.

 

Schedule 2, Page 1


Schedule 3

BERRY FACILITIES

[SCHEDULE FOLLOWS]

 

Schedule 3, Page 1


Schedule 3

Berry Facilities

 

   

Name

  

Address

   Phone    Status   

Descripion

   GPS Digital
1   BAKERSFIELD    5201 Truxtun Ave.    Bakersfield    CA    93309    661-616-3900    LEASED    Main Office, 51,928 rsf, lease expires 10/31/2019    35.368395,-119.060231
2   POSO CREEK    4401 Gretlein Rd.    Bakersfield    CA    93308    661-393-1823    OWNED    Field Office    35.554223, -119.057989
3   N MIDWAY (Diatomite)    25072 Hwy 33    Fellows    CA    93224    661-768-4554    OWNED    Field Office, built Oct, 2012, 10,900sf    35.242892,-119.581188
4   21Z/McKITTRICK    2920 Reserve Rd    McKittrick    CA    93251    661-213-7523    OWNED    Field Office / Plant    35.306779,-119.611527
5   PLACERITA    25121 N. Sierra Hwy    Newhall    CA    91321    661-255-6066    OWNED    Field Office    34.388641,-118.490459
6   TAFT    28700 Hovey Hills Rd.    Taft    CA    93268    661-769-8820    OWNED    Field Office    35.100105,-119.443945
7   PARACHUTE    235 Callahan Ave.    Parachute    CO    81635    970-285-5203    OWNED    Field Office, built May 2010, 6,000sf on .926acrs    39.452609,-108.048704
8   PALESTINE    8048 S. US Hwy 79    Palestine    TX    75801    NA    OWNED    Field Office, Unoccupied    31.701094,-95.721813
9   ROOSEVELT    4000 South 4028 West    Roosevelt    UT    84066    435-722-1325    OWNED    Field Office, built 2005/06 7,200sf on 5 acrs, 4,200 sf addition in 2012    40.244245, -110067710


Schedule 4

HILL FIELD OFFICES

[SCHEDULE FOLLOWS]

Schedule 4, Page 1


Schedule 4

Hill Field Offices

(I) N/2 and SW/4 of Fractional Section 19 T28S R21E MDBM/085-210-21 and 085-210-24. I2I SE/4 and SENE Section 10 T27S

R21E and S/2 Section 11 T27S 8’ J E, lyjng southwesterly of CA Aqueduct, 069-011-47 and 069-011-28


Schedule 5

BERRY CONTRACTS

Due to size Schedule 5 – Contracts is attached as a USB drive, which duplicates the Schedule 5 – Contracts via email on February 23, 2017 to John G. Mauel at john.mauel@nortonrosefullbright.com by Kristen Christensen at kchristensen@linnenergy.com and

Holly Anderson at handerson@linnenergy.com

Schedule 5, Page 1


Schedule 6

AVAILABLE EMPLOYEE LIST

[SCHDULE FOLLOW]

Schedule 6, Page 1


Berry Employee List

 

Job Title    GA/LOC Name    Work Location
Name
Operations Specialist    Field Service & Regulatory - Ca    Bakersfield
Engineering Analyst    Field Service & Regulatory - Ca    Bakersfield
Geology Tech,Sr.    South Midway Asset Team    Bakersfield
Engineer 2    South Midway Asset Team    Bakersfield
Foreman 1 Construction    Field Service & Regulatory - Ca    Bakersfield
Geology Tech    Diatomite Asset Team    Bakersfield
Software Developer 2    Information Technology - Hou    Bakersfield
Dist Prod Superintendent    Field Service & Regulatory - Ca    Bakersfield
Admin Assistant 1    Land - Houston Division    Bakersfield
SCM Manager    Supply Management - Okc    Bakersfield
Network Engineer 2    Information Technology - Hou    Bakersfield
Engineer 1    Diatomite Asset Team    Bakersfield
Asset Manager    Diatomite Asset Team    Bakersfield
EH&S Rep, Sr.    EH&S - Hou    Bakersfield
Asset Manager    Nsf Asset Team    Bakersfield
Business Intelligence (BI) Analyst 3, Sr.    Information Technology - Hou    Bakersfield
Desktop Sup Analyst 1    Information Technology - Hou    Bakersfield
Foreman 1 Completions    Field Service & Regulatory - Ca    Bakersfield
Geologist 3, Sr.    Nsf Asset Team    Bakersfield
Engineer, Advisor    Diatomite Asset Team    Bakersfield
Accting Tech/Clerk 2    Operations Accounting    Bakersfield
Accountant 4, Sr. Staff - Operations    Operations Accounting    Bakersfield
Engineer 1    Diatomite Asset Team    Bakersfield
EH&S Rep, Sr.    EH&S - Hou    Bakersfield
Desktop Sup Analyst 1    Information Technology - Hou    Bakersfield
Engineering Tech    Field Service & Regulatory - Ca    Bakersfield
Engineering Analyst    South Midway Asset Team    Bakersfield
Team Lead Engineering    Nsf Asset Team    Bakersfield
Operations Tech 1    Field Service & Regulatory - Ca    Bakersfield
Database Administrator, Sr    Information Technology - Hou    Bakersfield
Foreman 1 Measurement    Production Services - Hou Div    Bakersfield
Engineering Analyst    Nsf Asset Team    Bakersfield
Landman 3, Sr.    Land - Houston Division    Bakersfield
Geologist 3, Sr.    South Midway Asset Team    Bakersfield
Engineering Tech    Nsf Asset Team    Bakersfield
Engineer 3, Sr.    Diatomite Asset Team    Bakersfield
Dist Prod Superintendent    Field Service & Regulatory - Ca    Bakersfield
Foreman 2 Production    Field Service & Regulatory - Ca    Bakersfield
Engineer 3, Sr.    Nsf Asset Team    Bakersfield
Accountant 3, Sr.- Production    Production Accounting - Hou    Bakersfield
Engineering Analyst, Advisor    Diatomite Asset Team    Bakersfield
Buyer/Purchasing Rep 3    Supply Management - Okc    Bakersfield


Engineer 1    Nsf Asset Team    Bakersfield
Asset Manager    Operations Management - Ca    Bakersfield
IT Manager, Sr.    Information Technology - Hou    Bakersfield
EH&S Manager    EH&S - Hou    Bakersfield
Admin Assistant 1    Operations Management - Ca    Bakersfield
Inventory Analyst 1    Supply Management - Berry    Bakersfield
Foreman 2 Production    Field Service & Regulatory - Ca    Bakersfield
Buyer/Purchasing Rep 2    Supply Management - Berry    Bakersfield
Dist Prod Superintendent    South Midway Asset Team    Bakersfield
Engineer 2    South Midway Asset Team    Bakersfield
Engineer 1    South Midway Asset Team    Bakersfield
Field Admin 2    Field Service & Regulatory - Ca    Bakersfield
Team Lead Engineering    Nsf Asset Team    Bakersfield
Engineer 2    Nsf Asset Team    Bakersfield
Geologist 1    Diatomite Asset Team    Bakersfield
Engineering Tech    Nsf Asset Team    Bakersfield
Asset Manager    South Midway Asset Team    Bakersfield
Engineer 3, Sr.    South Midway Asset Team    Bakersfield
Engineer 1    Diatomite Asset Team    Bakersfield
EH&S Representative    EH&S - Hou    Bakersfield
Foreman 1 Production    Loe - Mn    N Midway
Field Operator 1    Loe - Mn    N Midway
Field Operator 1    Loe - Mn    N Midway
Operations Tech 2    Loe - Diatomite    N Midway
Operations Tech 1    Loe - Diatomite    N Midway
Field Operator 1    Loe - Diatomite    N Midway
Foreman 1 Production    Loe - Diatomite    N Midway
Field Operator 1    Loe - Mn    N Midway
Field Operator 1    Loe - Diatomite    N Midway
Operations Tech 4    Loe - Diatomite    N Midway
Field Operator 1    Loe - Diatomite    N Midway
Field Operator 2    Loe - Mn    N Midway
Field Operator 1    Loe - Diatomite    N Midway
Field Operator 1    Loe - Mn    N Midway
Field Operator 1    Loe - Diatomite    N Midway
Field Operator 1    Loe - Diatomite    N Midway
Field Operator 1    Loe - Diatomite    N Midway
Field Operator 1    Loe - Mn    N Midway
Engineering Analyst    Field Service & Regulatory - Ca    N Midway
Field Operator 1    Loe - Diatomite    N Midway
Field Operator 1    Loe - Diatomite    N Midway
Engineer 3, Sr.    Loe - Diatomite    N Midway
Dist Prod Superintendent    Diatomite Asset Team    N Midway
Operations Tech 2    Loe - Diatomite    N Midway
Field Operator 1    Loe - Diatomite    N Midway
Operations Tech 1    Field Service & Regulatory - Ca    N Midway
Operations Tech 3    Loe - Diatomite    N Midway


Foreman 1 Production    Loe - Diatomite    N Midway
Field Operator 3    Loe - Mn    N Midway
Field Operator 1    Loe - Diatomite    N Midway
Field Operator 1    Loe - Diatomite    N Midway
Field Operator 1    Loe - Placerita Ca    Placerita
Field Admin 3    Loe - Placerita Ca    Placerita
Field Operator 3    Loe - Placerita Ca    Placerita
Field Operator 4-Lead    Loe - Placerita Ca    Placerita
Operations Tech 4    Loe - Placerita Ca    Placerita
Field Operator 4-Lead    Loe - Placerita Ca    Placerita
Foreman 1 Production    Loe - Placerita Ca    Placerita
Field Operator 3    Loe - Placerita Ca    Placerita
Field Operator 3    Loe - Placerita Ca    Placerita
Field Operator 3    Loe - Placerita Ca    Placerita
Field Operator 2    Loe - Placerita Ca    Placerita
Field Meas/Pipe Tech 1    Field Service & Regulatory - Ca    Taft
Field Admin 1    Field Office Admin - Ms    Taft
Operations Tech 3    Loe - Homebase    Taft
Engineering Tech, Sr.    Field Service & Regulatory - Ca    Taft
Field Operator 1    Loe - Homebase    Taft
Field Operator 3    Loe - Homebase    Taft
Field Operator 4-Lead    Loe - Ethel D    Taft
Field Operator 3    Loe Formax    Taft
Field Operator 1    Loe - Ethel D    Taft
Field Admin 2    Field Office Admin - Ms    Taft
Field Operator 3    Loe - Ethel D    Taft
Field Operator 1    Loe - Homebase    Taft
Field Operator 2    Loe - Homebase    Taft
Foreman 1 Production    Loe Formax    Taft
Field Operator 1    Loe - Homebase    Taft
Field Operator 2    Loe - Homebase    Taft
Foreman 2 Production    Loe - Homebase    Taft
Mechanic 2    Loe - Homebase    Taft
Operations Tech 1    Loe - Ethel D    Taft
Field Operator 1    Loe Formax    Taft
Field Operator 3    Loe - Homebase    Taft
Field Operator 2    Loe - Homebase    Taft
Field Operator 2    Loe Formax    Taft
Field Operator 3    Loe - Homebase    Taft
Field Operator 3    Loe - Homebase    Taft
Field Operator 1    Loe - Ethel D    Taft
Field Meas/Pipe Tech 3    Field Service & Regulatory - Ca    Taft
Field Operator 4-Lead    Loe - Ethel D    Taft
Field Operator 3    Loe Formax    Taft
Field Operator 3    Loe - Poso Creek    Poso Creek
Field Operator 1    Loe - Poso Creek    Poso Creek
Operations Tech 4    Loe - Poso Creek    Poso Creek


Field Operator 1    Loe - Poso Creek    Poso Creek
Field Operator 3    Loe - Poso Creek    Poso Creek
Field Operator 2    Loe - Poso Creek    Poso Creek
Field Operator 1    Loe - Poso Creek    Poso Creek
Field Admin 2    Loe - Poso Creek    Poso Creek
Field Operator 1    Loe - Poso Creek    Poso Creek
Field Operator 1    Loe - Poso Creek    Poso Creek
Field Operator 1    Loe - Poso Creek    Poso Creek
Foreman 1 Production    Loe - Poso Creek    Poso Creek
Foreman 2 Production    Loe - Poso Creek    Poso Creek
Engineering Tech    Nsf Asset Team    McKittrick
Senior Production Engineer       Brea
Field Operator 2       McKittrick
Foreman 2 Production    LOE - Hill Belridge    McKittrick
Foreman 1 Production    LOE - Hill Belridge    McKittrick
Engineer 2    Nsf Asset Team    Bakersfield
Oeprations Tech 3    Field Service & Regulatory - Ca    McKittrick
Field Operator 2    LOE - Hill Belridge    McKittrick
Field Operator 1    LOE - Hill Belridge    McKittrick
Field Operator 2    LOE - Hill Belridge    McKittrick
Field Operator 2    LOE - Hill Belridge    McKittrick
Field Admin 2    LOE - Hill Belridge    McKittrick
Field Operator 1    LOE - Hill Belridge    McKittrick
Engineer 1    South Midway Asset Team    Bakersfield
Operations Tech 3    Field Service & Regulatory - Ca    N Midway
Field Operator 2    LOE - Hill Belridge    McKittrick
Field Operator 2*    Loe - Placerita Ca    Placerita

 

* Scheduled to begin employment with Linn Operating, Inc. on May 6, 2017


Employee Status    Job Title    Work Location
Active    Dist Prod Superintendent    Roosevelt
Active    Foreman 2 Production    Roosevelt
Active    Foreman 2 Production    Roosevelt
Active    Admin Supervisor    Roosevelt
Active    Foreman 2 Production    Roosevelt
Active    Foreman 1 Construction    Roosevelt
Active    Operations Tech 1    Roosevelt
Active    Field Meas/Pipe Tech 3    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Field Operator 2    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Regulatory Specialist 1    Roosevelt
Active    Mechanic 1    Roosevelt
Active    Foreman 2 Completions    Roosevelt
Active    N0093-Field Admin 2    Roosevelt
Active    Field Operator 2    Roosevelt
Active    Foreman 1 Production    Roosevelt
Active    Surface Land Rep 2    Roosevelt
Active    Field Meas/Pipe Tech 1    Roosevelt
Active    Field Operator 2    Roosevelt
Active    Field Meas/Pipe Tech 2    Roosevelt
Active    Operations Tech 2    Roosevelt
Active    Operations Tech 2    Roosevelt
Active    Foreman 1 Construction    Roosevelt
Active    Field Operator 3    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Operations Tech 3    Roosevelt
Active    Mechanic 1    Roosevelt
Active    Mechanic 1    Roosevelt
Active    Mechanic 1    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Field Operator 3    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Field Meas/Pipe Tech 2    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Operations Tech 1    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Field Operator 3    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Operations Tech 1    Roosevelt
Active    Operations Tech 3    Roosevelt
Active    Field Operator 1    Roosevelt


Active    EH&S Representative    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Mechanic 1    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Field Operator 3    Neola
Active    Field Admin 1    Roosevelt
Active    Field Admin 1    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Field Operator 1    Roosevelt
Active    Field Operator 1    Roosevelt


        Employee Status            Job Title    Work Location
Active    Operations Tech 3    Parachute                    
Active    Dist Prod Superintendent    Parachute
Active    Foreman 1 Production    Parachute
Active    Field Operator 1    Parachute
Active    Admin Supervisor    Parachute
Active    Field Operator 2    Parachute
Active    Foreman 1 Construction    Parachute
Active    Field Operator 1    Parachute
Active    Field Operator 1    Parachute
Active    Field Operator 1    Parachute


Berry/ Linn Employee List

 

        Employee Status            Job Title    Work Location
   Field Operator 3    Troup                        
   EH&S Rep., Senior    Brea
   Dist Production Superintendent    Brea
   Geologist 4, Sr. Staff    Houston
   Marketing Commercial Manager    Denver
   Technical Supervisor    Houston


Schedule 7

LINN’S SEVERANCE PLAN

[SCHEDULE FOLLOWS]

Schedule 7, Page 1


Schedule 7

LINN’S SEVERANCE PLAN

EXECUTION VERSION

LINN ENERGY, LLC

SEVERANCE PLAN

February 2, 2016

ARTICLE I

INTRODUCTION AND ESTABLISHMENT OF PLAN

The Committee hereby adopts the Linn Energy, LLC Severance Plan (the Plan”), as of the Effective Date, for eligible employees of the Company and its Subsidiaries. The Plan is intended to offer specified severance benefits to eligible employees in the event of certain involuntary terminations of employment from the Company. The Plan, as a “severance pay arrangement” within the meaning of Section 3(2)(B)(i) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) is intended to be and shall be administered and maintained as an unfunded welfare benefit plan under Section 3(1) of ERISA.

The Company expressly reserves the right at any time, and from time to time, for any reason in the Company’s sole discretion, to change, modify, alter or amend the Plan in any respect and to terminate the Plan in full. All provisions of the Plan relating to other employee benefit plans of the Company, or any of the Company’s Affiliates or Subsidiaries, are expressly limited by the provisions of such other employee benefit plans. The provisions of the Plan may not grant or create any rights other than as expressly provided for under such other employee benefit plans.

ARTICLE II

DEFINITIONS

As used herein, the following words and phrases shall have the following respective meanings unless the context clearly indicates otherwise.

2.1 Affiliate. Any entity which controls, is controlled by, or is under common control with, the Company.

2.2 Base Salary. The Participant’s annual rate of base salary payable by the Company (exclusive, among other things, of bonuses and special allowances) as in effect immediately prior to the date of such Participant’s Qualifying Termination.

2.3 Board. The Board of Directors of the Company.

2.4 Business Opportunities. All business ideas, prospects, proposals or other opportunities pertaining to the lease, acquisition, exploration, production, gathering or marketing of hydrocarbons and related products and the exploration potential of geographical areas on which hydrocarbon exploration prospects are located, which are developed by the Participant during his or her employment with the employer, or originated by any third party and brought to the attention of the Participant during his or her employment with the employer, together with information relating thereto (including, without limitation, geological and seismic data and interpretations thereof, whether in the form of maps, charts, logs, seismographs, calculations, summaries, memoranda, opinions or other written or charted means).

 

1


EXECUTION VERSION

2.5 Cause. For purposes of the Plan, the Company or an Employer will have “Cause” to terminate the Participant’s employment by reason of any of the following; provided, however, that determination of whether one or more of the elements of “Cause” has been met under the Plan shall be in the reasonable discretion of the Board with respect to Participants in Tiers 1 and 2 and the Plan Administrator for all other Participants.

(a) the Participant’s conviction of, or plea of nolo contendere to, any felony or to any crime or offense causing substantial harm to any of the Company or its direct or indirect Subsidiaries (whether or not for personal gain) or involving acts of theft, fraud, embezzlement, moral turpitude or similar conduct;

(b) the Participant’s repeated intoxication by alcohol or drugs during the performance of his or her duties;

(c) the Participant’s willful and intentional misuse of any of the funds of the Company or its direct or indirect Subsidiaries;

(d) embezzlement by the Participant;

(e) the Participant’s willful and material misrepresentations or concealments on any written reports submitted to any of the Company or its direct or indirect Subsidiaries; or

(f) conduct constituting a material breach by the Participant of the Company’s then current Code of Business Conduct and Ethics, and any other written policy referenced therein; provided that, in each case, the Participant knew or should have known such conduct to be a breach.

2.6 Change of Control Plan. The Linn Energy, LLC Change of Control Protection Plan, effective April 25, 2009, as amended.

2.7 COBRA. The term “COBRA” has the meaning set forth in Section 4.2(c).

2.8 Code. The Internal Revenue Code of 1986, as amended from time to time.

2.9 Committee. The Compensation Committee of the Board.

2.10 Company. Linn Energy, LLC.

2.11 Effective Date. The date first written above.

2.12 Employee. Any employee of an Employer, regardless of position, who is normally scheduled to work 30 or more hours per week for such Employer.

2.13 Employee Bonus Plan. The term “Employee Bonus Plan” has the meaning set forth in Section 4.2(b).

2.14 Employer. The Company and any Subsidiary that participates in the Plan pursuant to Article VI.

2.15 ERISA. The term “ERISA” has the meaning set forth in the Introduction.

 

2


EXECUTION VERSION

2.16 Good Reason. The term “Good Reason” shall have the meaning assigned to such term in any employment agreement between the Participant and the Employer, or in the absence of an employment agreement or such term being defined in an employment agreement, “Good Reason” shall mean any of the following to which the Participant will not consent in writing:

(a) a reduction in the Participant’s base salary;

(b) any material reduction in the Participant’s title, authority or responsibilities; or

(c) relocation of the Participant’s primary place of employment to a location more than 50 miles from the Employer’s location.

If termination is by the Participant with Good Reason, the Participant will give the Participant’s Employer written notice, which will identify with reasonable specificity the grounds for the Participant’s resignation and provide the Participant’s Employer with 30 days from the day such notice is given to cure the alleged grounds for resignation contained in the notice. A termination will not be for Good Reason if the Participant’s Employer has cured the alleged grounds for resignation contained in the notice within 30 days after receipt of such notice or if such notice is given by the Participant to the Participant’s Employer more than 30 days after the occurrence of the event that the Participant alleges is Good Reason for his or her termination hereunder. In order for a termination to be for “Good Reason”, the Company must fail to remedy the alleged grounds for resignation within the cure period, and the Participant must actually terminate employment with the Company and its Affiliates within 90 days after the expiration of the cure period.

2.17 Participant. An Employee who is designated as a participant pursuant to Section 3.1.

2.18 Person. Any individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended.

2.19 Plan. The Linn Energy, LLC Severance Plan.

2.20 Plan Administrator. The named fiduciary of the Plan as described in Section 9.1.

2.21 Qualifying Termination. Any termination of employment of a Participant initiated by the Employer other than for Cause; provided that, a termination initiated by a Participant for Good Reason shall also constitute a Qualifying Termination for Participants in Tier 1 and Tier 2.

2.22 Release. The term “Release” has the meaning set forth in Section 4.1(c)

2.23 Severance Benefits. The benefits described in Article IV that are provided to qualifying Participants under the Plan.

2.24 Subsidiary. Any entity of which the Company owns, directly or indirectly, all of such entity’s outstanding units, shares of capital stock or other voting securities.

 

3


EXECUTION VERSION

2.25 Tiers. The terms “Tier 1”,Tier 2”, “Tier 3”, “Tier 4”Tier 5” and “Tier 6” have the meaning set forth in Section 3.2.

ARTICLE III

ELIGIBILITY

3.1 Participants. An Employee of the Employer shall become a Participant in the Plan as of the later to occur of (i) the Effective Date or (ii) the date he or she first becomes an Employee of an Employer in a position covered by Tier 1, Tier 2, Tier 3, Tier 4, Tier 5 or Tier 6.

Notwithstanding any provision of the Plan to the contrary, no individual who is designated, compensated, or otherwise classified or treated by the Employer as a leased employee, consultant, independent contractor or other non-common law employee shall be eligible to receive benefits under the Plan. In the event of a Change of Control (as defined in the Change of Control Plan), severance benefits for eligible participants in the Change of Control Plan shall be provided under the terms of the Change of Control Plan and not the Plan; it is the intent of the Employer that Employees not be eligible for duplicate severance benefits under multiple plans.

3.2 Tiers. Employees eligible to participate in the Plan shall be assigned to Tier 1, Tier 2, Tier 3, Tier 4, Tier 5 or Tier 6 as set forth below; provided, however, that the Committee, with respect to Tiers 1 and 2 and the Plan Administrator with respect to all other Tiers may designate, by written notice to such Participant, that a Participant shall be assigned to a different Tier, in which case such designation by the Committee shall be controlling.

 

  (a) “Tier 1” means the Employee(s) of the Employer with the title of Senior Vice President.

 

  (b) “Tier 2” means the Employee(s) of the Employer with the title of Vice President.

 

  (c) “Tier 3” means the Employee(s) of the Employer with the title of Director or a Director level equivalent title.

 

  (d) “Tier 4” means the Employee(s) of the Employer with the title of Manager or a Manager level equivalent title.

 

  (e) “Tier 5” means the Employee(s) of the Employer with the title(s) of Supervisor or Key Technical.

 

  (f) “Tier 6” means any Employee of the Employer that is not assigned to Tier 1, Tier 2, Tier 3, Tier 4 or Tier 5.

 

4


EXECUTION VERSION

ARTICLE IV

SEVERANCE BENEFITS

4.1 Eligibility for Severance Pay. A Participant becomes eligible to receive Severance Benefits under the Plan upon a Qualifying Termination, provided that the Participant:

(a) performs in all material respects all transition and other matters required of the Participant by the Employer prior to his or her Qualifying Termination;

(b) complies in all material respects with the restrictive covenants in Article V hereof and returns to the Employer any property of the Employer which has come into the Participant’s possession; and

(c) returns (and does not thereafter revoke), within fifty days after the date of the Participant’s Qualifying Termination, a signed, dated and notarized original agreement and general release of claims in a form acceptable to the Employer, in its sole and absolute discretion (the “Release”).

4.2 Amount of Severance Benefits. A Participant entitled to Severance Benefits under Section 4.1 shall be entitled to the following Severance Benefits as set forth in this Section 4.2.

(a) Annual Base Salary.

(i) Tier 1. A Participant in Tier 1 on the date of his or her Qualifying Termination shall be entitled to a payment equal to one and one-half times his or her Base Salary.

(ii) Tier 2. A Participant in Tier 2 on the date of his or her Qualifying Termination shall be entitled to a payment equal to one times his or her Base Salary.

(iii) Tier 3. A Participant in Tier 3 on the date of his or her Qualifying Termination shall be entitled to a payment equal to nine months of his or her Base Salary.

(iv) Tier 4. A Participant in Tier 4 on the date of his or her Qualifying Termination shall be entitled to a payment equal to six months of his or her Base Salary.

(v) Tier 5. A Participant in Tier 5 on the date of his or her Qualifying Termination shall be entitled to a payment equal to four and one-half months of his or her Base Salary.

(vi) Tier 6. A Participant in Tier 6 on the date of his or her Qualifying Termination shall be entitled to a payment equal to three months of his or her Base Salary.

(b) Incentive Benefits. Each Participant who, as of his or her Qualifying Termination, participates in any cash incentive compensation or other cash bonus plan or arrangement as may be established by the Board from time to time (collectively, the “Employee Bonus Plan”) shall be entitled to receive the amount as determined under the Employee Bonus Plan for a termination of employment.

(c) COBRA Coverage. If the Participant timely and properly elects continuation health care coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) under the Employer’s health care plan, the Employer will pay the “Company’s portion” (as defined below) of the Participant’s COBRA continuation coverage of medical benefits (the “COBRA Coverage”) for the period set forth in the table below following the date of the

 

5


EXECUTION VERSION

Participants Qualifying Termination. The “Company’s portion” of COBRA Coverage shall be the difference between one hundred percent of the cost of the COBRA Coverage and the dollar amount of medical premium expenses paid for the same type or types of Employer medical benefits by a similarly situated Employee on the date of the Participant’s Qualifying Termination.

 

     Period of Continued
Tier    COBRA Coverage
1    18 Months
2    12 Months
3    9 Months
4    6 Months
5    5 Months
6    3 Months

(d) Outplacement Assistance. The Company shall pay fees on behalf of the Participant to a third-party outplacement services agency to provide outplacement services for up to the period of time set forth in the following table, which services shall be completed no later than nine months following the date of the Participant’s Qualifying Termination.

 

     Period of
Tier    Outplacement Services
1    6 Months
2    6 Months
3    3 Months
4    3 Months
5    3 Months
6    3 Months

(e) Time and Form of Payment. The Severance Benefits payable pursuant to Section 4.2(a) and Section 4.2(b) shall be paid in a single lump sum payment on the date that is sixty days after the date of the Participant’s Qualifying Termination, but no later than two and one half months following the last day of the calendar year that includes the date of the Participant’s Qualifying Termination. The Severance Benefits payable pursuant to Section 4.2(c) and Section 4.2(d) shall be paid directly to the service provider or shall be reimbursed to the Participant promptly, but in any event by no later than December 31st of the calendar year following the calendar year in which such expenses were incurred, shall not affect any payments or reimbursements in any other calendar year, and shall not be subject to liquidation or exchange for

 

6


EXECUTION VERSION

any other benefit. The taxable year in which any Severance Benefit under Section 4.2(c) or Section 4.2(d) is paid shall be determined in the sole discretion of the Employer, and the Participant shall not be permitted, directly or indirectly, to designate the taxable year of payment. Notwithstanding the foregoing, if the Participant has not timely returned the Release, or subsequently revokes the Release, the Participant shall forfeit all Severance Benefits.

(f) Withholding. The Company may withhold and deduct from any benefits and payments made or to be made pursuant to the Plan all federal, state, local and other taxes as may be required pursuant to any law or governmental regulation or ruling.

ARTICLE V

RESTRICTIVE COVENANTS

5.1 Non-Compete Obligations. During employment with the Employer and for a period of (i) nine (9) months after the Participant’s termination of employment for a Tier 1 Participant and (ii) six (6) months after the Participant’s termination of employment for a Tier 2 Participant:

(a) the Participant will not, other than through the Company, engage or participate in any manner, whether directly or indirectly through any family member or as an employee, employer, consultant, agent, principal, partner, more than one percent (1%) shareholder, officer, director, licensor, lender, lessor or in any other individual or representative capacity, in any business or activity which is engaged in leasing, acquiring, exploring, producing, gathering or marketing hydrocarbons and related products; provided that the foregoing shall not be deemed to restrain the participation by the Participant’s spouse in any capacity set forth above in any business or activity engaged in any such activity and provided further that the Company may, in good faith, take such reasonable action with respect to the Participant’s performance of his or her duties, responsibilities and authorities as it deems necessary and appropriate to protect its legitimate business interests with respect to any actual or apparent conflict of interest reasonably arising from or out of the participation by the Participant’s spouse in any such competitive business or activity; and

(b) all investments made by the Participant (whether in his or her own name or in the name of any family members or other nominees or made by the Participant’s controlled affiliates), which relate to the leasing, acquisition, exploration, production, gathering or marketing of hydrocarbons and related products will be made solely through the Company; and the Participant will not (directly or indirectly through any family members or other persons), and will not permit any of his or her controlled affiliates to: (A) invest or otherwise participate alongside the Company or its direct or indirect subsidiaries in any Business Opportunities, or (B) invest or otherwise participate in any business or activity relating to a Business Opportunity, regardless of whether any of the Company or its direct or indirect subsidiaries ultimately participates in such business or activity, in either case, except through the Company. Notwithstanding the foregoing, nothing in this Section 5.1(b) shall be deemed to prohibit the Participant or any family member from owning, or otherwise having an interest in, less than one percent (1%) of any publicly owned entity or three percent (3%) or less of any private equity fund or similar investment fund that invests in any business or activity engaged in any of the activities set forth above, provided that the Participant has no active role with respect to any investment by such fund in any entity.

 

7


EXECUTION VERSION

5.2 Non-Solicitation. With respect to any Participant in Tier 1 or Tier 2, during such Participant’s employment with the Employer and for a period of one (1) year after the Participant’s termination of employment, the Participant will not, whether for his or her own account or for the account of any other Person (other than the Company or its direct or indirect Subsidiaries), intentionally solicit, endeavor to entice away from the Company or its direct or indirect Subsidiaries, or otherwise interfere with the relationship of the Company or its direct or indirect Subsidiaries with, (a) any person who is employed by the Company or its direct or indirect Subsidiaries (including any independent sales representatives or organizations), or (b) any client or customer of the Company or its direct or indirect Subsidiaries.

ARTICLE VI

EMPLOYERS

Any Subsidiary of the Company shall be, and any new Subsidiary of the Company shall be an Employer under the Plan unless the Company makes an affirmative determination that such Subsidiary shall not be an Employer under the Plan. Pursuant to Section 3.1, the provisions of the Plan shall be fully applicable to the Employees of any such Subsidiary that becomes an Employer.

ARTICLE VII

SUCCESSOR TO COMPANY

The Plan shall bind any successor of the Company, its assets or its businesses (whether direct or indirect, by purchase, merger, consolidation or otherwise), in the same manner and to the same extent that the Company would be obligated under the Plan if no succession had taken place.

In the case of any transaction in which a successor would not by the foregoing provision or by operation of law be bound by the Plan, the Company shall require such successor expressly and unconditionally to assume and agree to perform the Company’s obligations under the Plan, in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. The term “Company,” as used in the Plan, shall mean the Company as hereinbefore defined and any successor or assignee to the business or assets which by reason hereof becomes bound by the Plan.

ARTICLE VIII

AMENDMENT AND TERMINATION

8.1 Amendment or Termination. While the Company expects and intends to continue the Plan, the Board or the Committee may amend the Plan at any time, and from time to time, for any reason in the Company’s sole discretion, to change, modify, alter or amend the Plan in any respect and to terminate the Plan in full.

8.2 Procedure for Extension, Amendment or Termination. Any extension, amendment or termination of the Plan by the Board in accordance with the foregoing shall be made by action of the Board in accordance with the Company’s Certificate of Formation and the Second Amended and Restated Limited Liability Company Agreement, as amended, in effect at the time, and applicable law.

 

8


EXECUTION VERSION

ARTICLE IX

PLAN ADMINISTRATION

9.1 Named Fiduciary; Administration. A committee composed of the Company’s Chief Financial Officer, Chief Operating Officer and Senior Vice President with oversight of Human Resources is the named fiduciary of the Plan and shall be the Plan Administrator. The Plan Administrator shall review and determine all claims for benefits under the Plan.

9.2 Claim Procedure.

(a) If an Employee or former Employee or his or her authorized representative (referred to in this Article IX as a “claimant”) makes a written request alleging a right to receive benefits under the Plan or alleging a right to receive an adjustment in benefits being paid under the Plan, the Company shall treat it as a claim for benefits.

(b) All claims and inquiries concerning benefits under the Plan must be submitted to the Plan Administrator in writing and be addressed as follows:

Plan Administrator

Linn Energy, LLC Severance Plan

Linn Energy, LLC

JP Morgan Chase Tower

600 Travis, Suite 5100

Houston, Texas 77002

The Plan Administrator shall have full and complete discretionary authority to administer, to construe, and to interpret the Plan, to decide all questions of eligibility, to determine the amount, manner and time of payment, and to make all other determinations deemed necessary or advisable for the Plan. The Plan Administrator shall initially deny or approve all claims for benefits under the Plan. The claimant may submit written comments, documents, records or any other information relating to the claim. Furthermore, the claimant shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claim for benefits.

(c) Claims Denial. If any claim for benefits is denied in whole or in part, the Plan Administrator shall notify the claimant in writing of such denial and shall advise the claimant of his or her right to a review thereof. Such written notice shall set forth, in a manner calculated to be understood by the claimant, specific reasons for such denial, specific references to the Plan provisions on which such denial is based, a description of any information or material necessary for the claimant to perfect his or her claim, an explanation of why such material is necessary and an explanation of the Plan’s review procedure, and the time limits applicable to such procedures. Furthermore, the notification shall include a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on review. Such written notice shall be given to the claimant within a reasonable period of time, which normally shall not exceed 90 days, after the claim is received by the Plan Administrator.

 

9


EXECUTION VERSION

(d) Appeals. Any claimant whose claim for benefits is denied in whole or in part may appeal, or his or her duly authorized representative may appeal on the claimant’s behalf, such denial by submitting to the Appeals Committee a request for a review of the claim within 60 days after receiving written notice of such denial from the Plan Administrator. The Appeals Committee shall comprise at least three individuals who serve as officers or managers of the Company. The Appeals Committee shall give the claimant upon request, and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claim of the claimant, in preparing his or her request for review. The request for review must be in writing and be addressed as follows:

Appeals Committee

Linn Energy, LLC Severance Plan

Linn Energy, LLC

JP Morgan Chase Tower

600 Travis, Suite 5100

Houston, Texas 77002

The request for review shall set forth all of the grounds upon which it is based, all facts in support thereof, and any other matters which the claimant deems pertinent. The Appeals Committee may require the claimant to submit such additional facts, documents, or other materials as the Appeals Committee may deem necessary or appropriate in making its review.

(e) Review of Appeals. The Appeals Committee shall act upon each request for review within 60 days after receipt thereof. The review on appeal shall consider all comments, documents, records and other information submitted by the claimant relating to the claim without regard to whether this information was submitted or considered in the initial benefit determination. The Appeals Committee shall have full and complete discretionary authority, in its review of any claims denied by the Plan Administrator, to administer, to construe, and to interpret the Plan, to decide all questions of eligibility, to determine the amount, manner and time of payment, and to make all other determinations deemed necessary or advisable for the Plan.

(f) Decision on Appeals. The Appeals Committee shall give written notice of its decision to the claimant. If the Appeals Committee confirms the denial of the application for benefits in whole or in part, such notice shall set forth, in a manner calculated to be understood by the claimant, the specific reasons for such denial, and specific references to the Plan provisions on which the decision is based. The notice shall also contain a statement that the claimant is entitled to receive upon request, and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claimant’s claim for benefits. Information is relevant to a claim if it was relied upon in making the benefit determination or was submitted, considered or generated in the course of making the benefit determination, whether it was relied upon or not. The notice shall also contain a statement of the claimant’s right to bring an action under ERISA Section 502 (a). If the Appeals Committee has not rendered a decision on a request for review within 60 days after receipt of the request for review, the claimant’s claim shall be deemed to have been approved. The Appeals Committee’s decision shall be final and not subject to further review within the Company. There are no voluntary appeals procedures after review by the Appeals Committee.

 

10


EXECUTION VERSION

(g) Time of Approved Payment. In the event that either the Plan Administrator or the Appeals Committee determines that the claimant is entitled to the payment of all or any portion of the benefits claimed, such payment shall be made to the claimant within 30 days of the date of such determination or such later time as may be required to comply with Section 409A of the Code.

(h) Determination of Time Periods. If the day on which any of the foregoing time periods is to end is a Saturday, Sunday or holiday recognized by the Company, the period shall extend until the next following business day.

9.3 Exhaustion of Administrative Remedies. Completion of the claims and appeals procedures described in Sections 9.2 of the Plan will be a condition precedent to the commencement of any legal or equitable action in connection with a claim for benefits under the Plan by a claimant; provided, however, that the Appeals Committee may, in its sole discretion, waive compliance with such claims procedures as a condition precedent to any such action.

ARTICLE X

MISCELLANEOUS

10.1 Employment Status. The Plan does not constitute a contract of employment or impose on the Participant or the Participant’s Employer any obligation for the Participant to remain an Employee or change the status of the Participant’s employment or the policies of such Employer regarding termination of employment.

10.2 Unfunded Plan Status. All payments pursuant to the Plan shall be made from the general funds of the Company and no special or separate fund shall be established or other segregation of assets made to assure payment. No Participant or other person shall have under any circumstances any interest in any particular property or assets of the Company as a result of participating in the Plan. Notwithstanding the foregoing, the Company may (but shall not be obligated to) create one or more grantor trusts, the assets of which are subject to the claims of the Company’s creditors, to assist it in accumulating funds to pay its obligations under the Plan.

10.3 Validity and Severability. The invalidity or unenforceability of any provision of the Plan shall not affect the validity or enforceability of any other provision of the Plan, which shall remain in full force and effect, and any prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

10.4 Anti-Alienation of Benefits. No amount to be paid hereunder shall be subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors of the Employee or the Employee’s beneficiary.

10.5 Governing Law. The validity, interpretation, construction and performance of the Plan shall in all respects be governed by the laws of Texas, without reference to principles of conflicts of law, except to the extent pre-empted by Federal law.

 

11


EXECUTION VERSION

IN WITNESS WHEREOF, this Linn Energy, LLC Severance Plan has been adopted the Committee to be effective as of the Effective Date.

 

LINN ENERGY, LLC
By:  

/s/ Mark E. Ellis

Mark E. Ellis
Chairman of the Board of Directors,
President and Chief Executive Officer

 

12


FIRST AMENDMENT TO

LINN ENERGY, LLC SEVERANCE PLAN

The Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of Linn Energy, LLC, a Delaware limited liability company (the “Company”), previously adopted the Linn Energy, LLC Severance Plan (the “Plan”). The Company hereby amends the Plan effective on the date the Committee approves the amendment (the “Amendment Effective Date”).

RECITALS

WHEREAS, the Company established, and the Committee adopted, the Plan, under which the Company offers specified severance benefits to eligible employees of the Company and the Subsidiaries, in the event of certain involuntary terminations of employment;

WHEREAS, Section 8.1 of the Plan provides that the Committee or the Board may amend the Plan at any time, and from time to time, for any reason in the Company’s sole discretion;

WHEREAS, the Company now desires to amend the Plan to provide that a Participant shall not be entitled to any benefits under the Plan if (i) the Participant is terminated as a result of the sale or other disposition of a plant, facility, division, operating assets or Subsidiary or any similar transaction, and (ii) in connection with such transaction, the Participant is offered continued employment with the purchaser or any of its affiliates in a comparable position to the one held by the Participant immediately prior to his or her date of termination, as determined in the Company’s sole discretion; and

WHEREAS, capitalized terms used but not defined herein shall have the same meaning as set forth in the Plan.

AMENDMENTS

1. Section 2.21 of the Plan is hereby amended to add the following text:

“A Qualifying Termination will not have occurred for purposes of this Plan, if (i) the Participant is terminated as a result of the sale or other disposition of a plant, facility, division, operating assets or Subsidiary or any similar transaction, and (ii) in connection with such transaction, the Participant is offered continued employment with the purchaser or any of its affiliates with the same base salary as was in effect as of immediately before such transaction and at a location within fifty (50) miles of the primary location at which the Participant worked immediately before such transaction, in each case, as determined in the Company’s sole discretion.”

2. Except as set specifically amended above, the Plan will remain in full force and effect.


IN WITNESS WHEREOF, the Company has cause the execution of this Amendment by its duly authorized officer, effective as of the Amendment Effective Date.

 

LINN ENERGY, LLC
By:   /s/ Candice J. Wells
Name:   Candice J. Wells
Title:   Senior Vice President, General Counsel and Corporate Secretary
Effective Date: July 22, 2016

 

2


Schedule 8

TRANSFERRED HARDWARE

[SCHEDULE FOLLOWS]

Schedule 8, Page 1


Schedule 8

Transferred Hardware

 

PC    Status    Manufacturer    Model    Memory    Processor    Age/Year    Value    City    State    physicalDeliveryOfficeName

BAK-ALD1

   Active    Dell Inc.    OptiPlex 990    4096    3401    3    $175    Bakersfield    CA    Bakersfield, CA

BAK-DJOHNSON7

   Active    Dell Inc.    OptiPlex 990    4096    3401    3    $175    Bakersfield    CA    Bakersfield, CA

BERDT-J2R7N22

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $400    McKittrick    CA    21Z/McKittrick, CA

BERDT-J2RFN22

   Inactive    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $400    McKittrick    CA    0

BERDT-J2RRN22

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $400    McKittrick    CA    0

BERDT-J2RSN22

   Inactive    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $400    Bakersfield    CA    0

BERDT-J2RTN22

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $400    McKittrick    CA    0

BERDT-J2RVN22

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $400    McKittrick    CA    0

BERDT-J2RWN22

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $400    McKittrick    CA    0

BERDT-J2RYN22

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $400    McKittrick    CA    Bakersfield, CA

BERLT-13M8K12

   Active    Dell Inc.    Latitude E7440    4096    2401    2    $400    McKittrick    CA    0

BERLT-19BTTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $350    Roosevelt    UT    0

BERLT-1MBTTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $350    Roosevelt    UT    Roosevelt, UT

BERLT-2PK8K12

   Active    Dell Inc.    Latitude E7440    4096    2401    2    $400    McKittrick    CA    0

BERLT-2TFBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-2VSBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-333PVY1

   Active    Dell Inc.    Latitude E6430    4096    2701    3-4    $275    McKittrick    CA    Taft

BERLT-3CZBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-3YTBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-46SSTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $350    Bakersfield    CA    Bakersfield, CA

BERLT-5F0TTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $350    Roosevelt    UT    Roosevelt, UT

BERLT-5MDBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-5N2PVY1

   Active    Dell Inc.    Latitude E6430    4096    2701    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-6GCTTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $350    Roosevelt    UT    Roosevelt, UT

BERLT-7MDBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-7PK8K12

   Inactive    Dell Inc.    Latitude E7440    4096    2401    2    $400    McKittrick    CA    NMWSS

BERLT-7W0PVY1

   Active    Dell Inc.    Latitude E6430    4096    2701    3-4    $275    Parachute    CO    Parachute, CO

BERLT-88NBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-88VBJX1

   Inactive    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-91TBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Bakersfield    CA    Bakersfield, CA

BERLT-922PVY1

   Active    Dell Inc.    Latitude E6430    4096    2701    3-4    $275    Roosevelt    UT    Utah

BERLT-98NBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    Utah

BERLT-9GTBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-9N2PVY1

   Active    Dell Inc.    Latitude E6430    4096    2701    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-9XRBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    Utah

BERLT-BPSBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-BRPSTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $350    Bakersfield    CA    139

BERLT-BVRBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-BZFBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-C76TTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $350    Roosevelt    UT    0

BERLT-C8PRBS1

   Active    Dell Inc.    Latitude E6420    4096    2501    4    $235    Roosevelt    UT    Roosevelt, UT

BERLT-D12PVY1

   Active    Dell Inc.    Latitude E6430    4096    2701    3-4    $275    Parachute    CO    Parachute, CO

BERLT-D2NBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-D3DTTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $350    Roosevelt    UT    Roosevelt, UT

BERLT-D6RSTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $350    Bakersfield    CA    Bakersfield, CA

BERLT-DZ5TTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $350    Roosevelt    UT    Roosevelt, UT

BERLT-F2TBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    0

BERLT-FCTTTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $350    Bakersfield    CA    Lync user for Receptionist
Midway (MBK)

BERLT-FHM8K12

   Inactive    Dell Inc.    Latitude E7440    4096    2401    2    $400    Bakersfield    CA    Bakersfield, CA

BERLT-FQ4PVY1

   Active    DELL        CBX3           2701    2    $250    Roosevelt    UT    Utah


Schedule 8

Transferred Hardware

 

BERLT-FQ4PVY1

   Active    DELL        CBX3        4096    2701    2    $250    Roosevelt    UT    Utah

BERLT-G6DBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-GHVBJX1

   Inactive    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-GM2PVY1

   Inactive    Dell Inc.    Latitude E6430    4096    2701    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-GVRBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-HVVBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-HW4PVY1

   Active    Dell Inc.    Latitude E6430    4096    2701    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-HWLN7W1

   Active    Dell Inc.    Latitude E6430    8192    2601    3-4    $275    Roosevelt    UT    0

BERLT-J32XXZ1

   Active    Dell Inc.    Latitude E6440    8192    2901    3    $350    McKittrick    CA    NMWSS

BERLT-JPTBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    Roosevelt, UT

BERLT-JWS9JX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $275    Roosevelt    UT    0

BFDDT-2M6MFZ1

   Active    Dell Inc.    Precision T5610    8192    2601    2    $1,300    Bakersfield    CA    Bakersfield, CA

BFDDT-2M6NFZ1

   Active    Dell Inc.    Precision T5610    8192    2601    2    $1,300    Bakersfield    CA    Bakersfield, CA

BFDDT-2M7LFZ1

   Active    Dell Inc.    Precision T5610    8192    2601    2    $1,300    Bakersfield    CA    Bakersfield, CA

BFDDT-2M7PFZ1

   Active    Dell Inc.    Precision T5610    8192    2601    2    $1,300    Bakersfield    CA    Bakersfield, CA

BFDDT-2M8MFZ1

   Active    Dell Inc.    Precision T5610    8192    2601    2    $1,300    Bakersfield    CA    Bakersfield, CA

BFDDT-43BWM02

   Active    Dell Inc.    OptiPlex 9020    4096    2901    1-2    $400    Bakersfield    CA    BAKERSFIELD

BFDDT-43JYM02

   Active    Dell Inc.    OptiPlex 9020    4096    2901    1-2    $400    Bakersfield    CA    Bakersfield, CA

BFDDT-49CW9P1

   Active    Dell Inc.    OptiPlex 980    2048    2927    4    $100    Bakersfield    CA    Bakersfield, CA

BFDDT-4FTRDB2

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $400    Bakersfield    CA    Bakersfield, CA

BFDDT-4FTSDB2

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $400    Bakersfield    CA    0

BFDDT-53YH9Z1

   Active    Dell Inc.    OptiPlex 9020    4096    3201    1-2    $400    Bakersfield    CA    Bakersfield, CA

BFDDT-55JLS22

   Active    Dell Inc.    OptiPlex 9020    4096    3301    1-2    $400    Taft    CA    Taft

BFDDT-55P8S22

   Active    Dell Inc.    OptiPlex 9020    4096    3301    1-2    $400    Newhall    CA    Placerita

BFDDT-57B9S22

   Active    Dell Inc.    OptiPlex 9020    4096    3301    1-2    $400    Bakersfield    CA    Bakersfield, CA

BFDDT-BHZ5942

   Active    Dell Inc.    Precision Tower 58    4096    2601    2    $1,000    Bakersfield    CA    Bakersfield, CA

BFDDT-CWHQDX1

   Active    Dell Inc.    OptiPlex 9010    4096    3401    3    $250    Bakersfield    CA    Bakersfield, CA

BFDDT-CWHSDX1

   Active    Dell Inc.    OptiPlex 9010    4096    3401    3    $250    Bakersfield    CA    Bakersfield, CA

BFDDT-DBPPQ22

   Active    Dell Inc.    Precision Tower 58    16384    2601    2    $1,300    Bakersfield    CA    Bakersfield, CA

BFDDT-DCGGS22

   Active    Dell Inc.    Precision Tower 58    16384    2601    2    $1,300    Bakersfield    CA    Bakersfield, CA

BFDDT-G1Y6MS1

   Active    Dell Inc.    Precision WorkStat    4096    2394    3    $400    Bakersfield    CA    Bakersfield, CA

BFDDT-G1Y7MS1

   Active    Dell Inc.    Precision WorkStat    4096    2394    3    $400    Bakersfield    CA    Bakersfield, CA

BFDDT-HR82XX1

   Active    Dell Inc.    OptiPlex 9010    4096    3401    3    $250    Bakersfield    CA    Bakersfield, CA

BFDDT-J2RGN22

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $400    McKittrick    CA    0

BFDDT-JQKMVW1

   Active    Dell Inc.    Dell System XPS L3    4096    2501    3    $250    Bakersfield    CA    Bakersfield, CA

BFDLT-1NX8TY1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $350    Bakersfield    CA    BAKERSFIELD

BFDLT-1RBHL12

   Active    Dell Inc.    Latitude E7440    8192    2601    2    $400    Bakersfield    CA    Bakersfield, CA

BFDLT-1YGDJ72

   Active    Dell Inc.    Latitude E7250    8192    2301    1    $700    Bakersfield    CA    Bakersfield, CA

BFDLT-245TJ12

   Active    Dell Inc.    Latitude E7440    4096    2401    2    $400    Bakersfield    CA    Bakersfield, CA

BFDLT-2GT1P12

   Active    Dell Inc.    Latitude E7440    4096    2601    2    $400    Bakersfield    CA    Bakersfield, CA

BFDLT-2H4TJ12

   Active    Dell Inc.    Latitude E7440    4096    2401    2    $400    Bakersfield    CA    Bakersfield, CA

BFDLT-2P7TJ12

   Active    Dell Inc.    Latitude E7440    4096    2401    2    $400    Bakersfield    CA    0

BFDLT-2XC8Q12

   Active    Dell Inc.    Latitude E7440    8192    2601    2    $400    Bakersfield    CA    Bakersfield, CA

BFDLT-3CR7Q12

   Active    Dell Inc.    Latitude E7440    8192    2601    2    $400    Bakersfield    CA    Bakersfield, CA

BFDLT-3J1ML12

   Active    Dell Inc.    Precision M4800    4096    2701    2    $700    Bakersfield    CA    0

BFDLT-3MMTZ52

   Active    Dell Inc.    Latitude E7250    8192    2301    1    $700    Bakersfield    CA    Bakersfield, CA

BFDLT-4C4TJ12

   Active    Dell Inc.    Latitude E7440    4096    2401    2    $400    Bakersfield    CA    Bakersfield, CA

BFDLT-4C8TTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $350    Taft    CA    Taft

BFDLT-4DXSTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $350    Parachute    CO    Parachute, CO

BFDLT-4MVFH12

   Active    Dell Inc.    Latitude E7440    4096    2301    2    $400    Bakersfield    CA    Bakersfield, CA

BFDLT-4SC8Q12

   Active    Dell Inc.    Latitude E7440    8192    2601    2    $400    Bakersfield    CA    Bakersfield, CA


Schedule 8

Transferred Hardware

 

BFDLT-4ZR1P12

   Active    Dell Inc.    Latitude E7440    4096    2601    2    $ 400      Bakersfield    CA    0

BFDLT-594TJ12

   Active    Dell Inc.    Latitude E7440    4096    2401    2    $ 400      Bakersfield    CA    Bakersfield, CA

BFDLT-5Q7TJ12

   Active    Dell Inc.    Latitude E7440    4096    2401    2    $ 400      Bakersfield    CA    127

BFDLT-5XR1P12

   Active    Dell Inc.    Latitude E7440    4096    2601    2    $ 400      Bakersfield    CA    Bakersfield, CA

BFDLT-6BQ7Q12

   Active    Dell Inc.    Latitude E7440    8192    2601    2    $ 400      Bakersfield    CA    Bakersfield, CA

BFDLT-6QSSTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Roosevelt    UT    Roosevelt, UT

BFDLT-87D8Q12

   Active    Dell Inc.    Latitude E7440    8192    2601    2    $ 400      Bakersfield    CA    Bakersfield, CA

BFDLT-884TTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Roosevelt    UT    Roosevelt, UT

BFDLT-8KT1P12

   Active    Dell Inc.    Latitude E7440    4096    2601    2    $ 400      Bakersfield    CA    139

BFDLT-8L4TTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Bakersfield    CA    Bakersfield, CA

BFDLT-8NNDJ72

   Active    Dell Inc.    Latitude E7250    8192    2301    1    $ 700      Bakersfield    CA    0

BFDLT-8T5TJ12

   Active    Dell Inc.    Latitude E7440    4096    2401    2    $ 400      McKittrick    CA    Bakersfield, CA

BFDLT-8XQ1P12

   Active    Dell Inc.    Latitude E7440    4096    2601    2    $ 400      Bakersfield    CA    0

BFDLT-9886TY1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Bakersfield    CA    Poso Creek Field

BFDLT-9B1CQ12

   Active    Dell Inc.    Latitude E7440    8192    2601    2    $ 400      Bakersfield    CA    Bakersfield, CA

BFDLT-9B4TJ12

   Active    Dell Inc.    Latitude E7440    4096    2401    2    $ 400      Bakersfield    CA    Bakersfield, CA

BFDLT-9F4TJ12

   Active    Dell Inc.    Latitude E7440    4096    2401    2    $ 400      Bakersfield    CA    Bakersfield, CA

BFDLT-9H4TJ12

   Active    Dell Inc.    Latitude E7440    4096    2401    2    $ 400      Bakersfield    CA    Bakersfield, CA

BFDLT-B3SFH12

   Active    Dell Inc.    Latitude E7440    4096    2301    2    $ 400      Bakersfield    CA    Bakersfield, CA

BFDLT-B64XXZ1

   Inactive    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Bakersfield    CA    139

BFDLT-B7VZZ52

   Active    Dell Inc.    Latitude E7250    8192    2301    1    $ 700      Bakersfield    CA    Bakersfield, CA

BFDLT-BC8TTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Roosevelt    UT    Roosevelt, UT

BFDLT-BKR1P12

   Active    Dell Inc.    Latitude E7440    4096    2601    2    $ 400      Bakersfield    CA    257

BFDLT-BZS9JX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $ 275      Bakersfield    CA    Bakersfield, CA

BFDLT-C08TJ12

   Active    Dell Inc.    Latitude E7440    4096    2401    2    $ 400      Bakersfield    CA    Bakersfield, CA

BFDLT-C1V1P12

   Active    Dell Inc.    Latitude E7440    4096    2601    2    $ 400      Bakersfield    CA    Bakersfield, CA

BFDLT-CQGZTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Bakersfield    CA    0

BFDLT-D2DTTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Bakersfield    CA    Bakersfield, CA

BFDLT-D7D8Q12

   Active    Dell Inc.    Latitude E7440    8192    2601    2    $ 400      Bakersfield    CA    BAKERSFIELD

BFDLT-DVD8Q12

   Active    Dell Inc.    Latitude E7440    8192    2601    2    $ 400      Bakersfield    CA    NMWSS

BFDLT-DZGZTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Roosevelt    UT    Roosevelt, UT

BFDLT-F5LHL12

   Inactive    Dell Inc.    Latitude E7440    8192    2601    2    $ 400      Bakersfield    CA    0

BFDLT-FBS2062

   Active    Dell Inc.    Latitude E7250    8192    2301    1    $ 700      Bakersfield    CA    Taft

BFDLT-FN7TJ12

   Active    Dell Inc.    Latitude E7440    4096    2401    2    $ 400      Bakersfield    CA    Bakersfield, CA

BFDLT-FNS1P12

   Active    Dell Inc.    Latitude E7440    4096    2601    2    $ 400      Bakersfield    CA    Bakersfield, CA

BFDLT-FP7TJ12

   Active    Dell Inc.    Latitude E7440    4096    2401    2    $ 400      Bakersfield    CA    Bakersfield, CA

BFDLT-FXD8Q12

   Active    Dell Inc.    Latitude E7440    8192    2601    2    $ 400      Bakersfield    CA    Bakersfield, CA

BFDLT-G25TJ12

   Inactive    Dell Inc.    Latitude E7440    4096    2401    2    $ 400      Bakersfield    CA    Bakersfield, CA

BFDLT-G9WFH12

   Active    Dell Inc.    Latitude E7440    4096    2301    2    $ 400      Bakersfield    CA    Bakersfield, CA

BFDLT-GB4TJ12

   Active    Dell Inc.    Latitude E7440    4096    2401    2    $ 400      Bakersfield    CA    0

BFDLT-GSR1P12

   Active    Dell Inc.    Latitude E7440    4096    2601    2    $ 400      Bakersfield    CA    208F

BFDLT-H5KSTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Bakersfield    CA    Bakersfield, CA

BFDLT-HJ1ML12

   Active    Dell Inc.    Precision M4800    4096    2701    2    $ 700      Bakersfield    CA    Bakersfield, CA

BFDLT-HMN2Q12

   Active    Dell Inc.    Precision M4800    8192    3301    2    $ 700      Bakersfield    CA    Bakersfield, CA

BFDLT-HTCTTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      McKittrick    CA    NMWSS

BFDLT-J47TJ12

   Active    Dell Inc.    Latitude E7440    4096    2401    2    $ 400      Bakersfield    CA    Bakersfield, CA

BFDLT-JM4TJ12

   Active    Dell Inc.    Latitude E7440    4096    2401    2    $ 400      Bakersfield    CA    Bakersfield, CA

BFDLT-JM5PVY1

   Active    Dell Inc.    Latitude E6430    4096    2701    3-4    $ 275      Bakersfield    CA    Bakersfield, CA

BFDLT-JP60062

   Active    Dell Inc.    Latitude E7250    8192    2301    1    $ 700      Bakersfield    CA    Bakersfield, CA

BFDLT-JXRFH12

   Active    Dell Inc.    Latitude E7440    4096    2301    2    $ 400      Bakersfield    CA    Bakersfield, CA

BIGDT-BNVJQW1

   Active    Dell Inc.    OptiPlex 9010    4096    3401    3    $ 250      Roosevelt    UT    435-353-5780


Schedule 8

Transferred Hardware

 

GBKLT-97GHL12

   Active    Dell Inc.    Latitude E7440    8192    2601    2    $ 400      Roosevelt    UT    Roosevelt, UT

HUGLT-2XSDN12

   Active    Dell Inc.    Latitude E7440    4096    2401    2    $ 400      Lakin    KS    Lakin, KS

HUGLT-6LJ9J72

   Active    Dell Inc.    Latitude E7250    8192    2301    1    $ 700      Lakin    KS    0

HUGLT-FSWFH12

   Active    Dell Inc.    Latitude E7440    4096    2301    2    $ 400      Lakin    KS    Lakin, KS

HUGLT-FXWFH12

   Active    Dell Inc.    Latitude E7440    4096    2301    2    $ 400      Lakin    KS    Lakin, KS

HUGLT-JQZ1G12

   Active    Dell Inc.    Latitude E7440    4096    2301    2    $ 400      Lakin    KS    Lakin, KS

MIDDT-3BFW842

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $ 400      Newhall    CA    Placerita

MIDDT-557HS22

   Active    Dell Inc.    OptiPlex 9020    4096    3301    1-2    $ 400      Bakersfield    CA    Bakersfield, CA

MIDDT-55QKS22

   Active    Dell Inc.    OptiPlex 9020    4096    3301    1-2    $ 400      McKittrick    CA    0

MIDLT-6FT1P12

   Active    Dell Inc.    Latitude E7440    4096    2601    2    $ 400      Bakersfield    CA    0

MIDLT-JWR1P12

   Active    Dell Inc.    Latitude E7440    4096    2601    2    $ 400      Bakersfield    CA    BAKERSFIELD

NEOLT-15HHL12

   Active    Dell Inc.    Latitude E7440    8192    2601    2    $ 400      Roosevelt    UT    Roosevelt, UT

NEOLT-3TBHL12

   Active    Dell Inc.    Latitude E7440    8192    2601    2    $ 400      Roosevelt    UT    Roosevelt, UT

NEOLT-40CHL12

   Active    Dell Inc.    Latitude E7440    8192    2601    2    $ 400      Roosevelt    UT    Roosevelt, UT

NEOLT-83CHL12

   Active    Dell Inc.    Latitude E7440    8192    2601    2    $ 400      Roosevelt    UT    0

NEOLT-C2HHL12

   Active    Dell Inc.    Latitude E7440    8192    2601    2    $ 400      Roosevelt    UT    Roosevelt, UT

NEOLT-JGBHL12

   Active    Dell Inc.    Latitude E7440    8192    2601    2    $ 400      Roosevelt    UT    Roosevelt, UT

PAMLT-1WKM6R1

   Active    Dell Inc.    Latitude E6420    4096    2501    4    $ 235      Lakin    KS    Garden City, KS

PARDT-3BDV842

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $ 400      Roosevelt    UT    Roosevelt, UT

PARDT-4VKPRW1

   Active    Dell Inc.    OptiPlex 9010    4096    3401    3    $ 250      Parachute    CO    Parachute, CO

PARDT-5RYJ4V1

   Active    Dell Inc.    OptiPlex 990    4096    3401    3    $ 175      Parachute    CO    Parachute, CO

PARLT-1T3XXZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Parachute    CO    Parachute, CO

PARLT-292PVY1

   Active    Dell Inc.    Latitude E6430    4096    2701    3-4    $ 275      Parachute    CO    Parachute, CO

PARLT-2N3PVY1

   Active    Dell Inc.    Latitude E6430    4096    2701    3-4    $ 275      Parachute    CO    Parachute, CO

PARLT-4GCBXZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Parachute    CO    Parachute, CO

PARLT-F62PVY1

   Active    Dell Inc.    Latitude E6430    4096    2701    3-4    $ 275      Parachute    CO    Parachute, CO

PARLT-G09GSY1

   Active    Dell Inc.    Latitude E6430    4096    3001    3-4    $ 275      Parachute    CO    Parachute, CO

PLADT-22FZ182

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $ 400      Newhall    CA    Placerita

PLADT-G5QK9R1

   Active    Dell Inc.    OptiPlex 390    4096    3300    4+    $ 100      Newhall    CA    Placerita

PLALT-2FVFH12

   Active    Dell Inc.    Latitude E7440    4096    2301    2    $ 400      Bakersfield    CA    Placerita, Ca.

PLALT-75Z2062

   Active    Dell Inc.    Latitude E7250    8192    2301    1    $ 700      Newhall    CA    Placerita

PLALT-J9S8J72

   Active    Dell Inc.    Latitude E7250    8192    2301    1    $ 700      Newhall    CA    Placerita

PLALT-JWGDJ72

   Active    Dell Inc.    Latitude E7250    8192    2301    1    $ 700      Newhall    CA    Placerita

POSDT-4HWHS22

   Active    Dell Inc.    OptiPlex 9020    4096    3301    1-2    $ 400      Bakersfield    CA    Poso Creek Field

POSDT-4JNNS22

   Active    Dell Inc.    OptiPlex 9020    4096    3301    1-2    $ 400      Bakersfield    CA    Poso Creek Field

POSDT-557CS22

   Active    Dell Inc.    OptiPlex 9020    4096    3301    1-2    $ 400      Bakersfield    CA    Poso Creek Field

POSDT-559NS22

   Active    Dell Inc.    OptiPlex 9020    4096    3301    1-2    $ 400      Bakersfield    CA    Poso Creek

POSDT-55F9S22

   Active    Dell Inc.    OptiPlex 9020    4096    3301    1-2    $ 400      Bakersfield    CA    Poso Creek

POSDT-55K9S22

   Active    Dell Inc.    OptiPlex 9020    4096    3301    1-2    $ 400      Bakersfield    CA    Poso Creek Field

POSDT-55NKS22

   Active    Dell Inc.    OptiPlex 9020    4096    3301    1-2    $ 400      Bakersfield    CA    Poso Creek Field

POSDT-55TBS22

   Active    Dell Inc.    OptiPlex 9020    4096    3301    1-2    $ 400      Bakersfield    CA    Poso Creek, CA

POSDT-6XX9R22

   Active    Dell Inc.    OptiPlex 9020    4096    3301    1-2    $ 400      Bakersfield    CA    Poso Creek Field

ROSDT-CYBZ942

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $ 400      Roosevelt    UT    Roosevelt, UT

ROSLT-29RSTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Roosevelt    UT    Roosevelt, UT

ROSLT-50C9J72

   Active    Dell Inc.    Latitude E7250    8192    2301    1    $ 700      Roosevelt    UT    Roosevelt, UT

ROSLT-7H2PVY1

   Active    Dell Inc.    Latitude E6430    4096    2701    3-4    $ 275      Roosevelt    UT    Roosevelt, UT

ROSLT-8P45662

   Active    Dell Inc.    Latitude E7250    8192    2301    1    $ 700      Roosevelt    UT    Roosevelt, UT

ROSLT-9DDTTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Taft    CA    Taft

ROSLT-B05TTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Roosevelt    UT    0

ROSLT-BYNK2Q1

   Active    Dell Inc.    Latitude E6420    2048    2100    4    $ 235      Roosevelt    UT    Roosevelt, UT

ROSLT-C5SSTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Roosevelt    UT    Roosevelt, UT


Schedule 8

Transferred Hardware

 

ROSLT-CJRSTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Roosevelt    UT    435-353-5780

ROSLT-FZ5DJ72

   Active    Dell Inc.    Latitude E7250    8192    2301    1    $ 700      Roosevelt    UT    Roosevelt, UT

ROSLT-H9TBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $ 275      Roosevelt    UT    Roosevelt, UT

RVTDT-CONF

   Active    Dell Inc.    OptiPlex 990    2048    3101    3    $ 175      Roosevelt    UT    Roosevelt, UT

RVTLT-1G6PVY1

   Active    Dell Inc.    Latitude E6430    4096    2701    3-4    $ 275      Roosevelt    UT    Roosevelt, NM

RVTLT-2572DS1

   Active    Dell Inc.    Latitude E6420    2048    2501    4    $ 235      Roosevelt    UT    0

RVTLT-4RZBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $ 275      Roosevelt    UT    Utah

RVTLT-5CQSTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Roosevelt    UT    Roosevelt, UT

RVTLT-5J2XCS1

   Active    Dell Inc.    Latitude E6420    4096    2501    4    $ 235      Roosevelt    UT    Roosevelt, UT

RVTLT-7TRSTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Roosevelt    UT    Roosevelt, UT

RVTLT-91SBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $ 275      Roosevelt    UT    Utah

RVTLT-BN0PVY1

   Active    Dell Inc.    Latitude E6430    4096    2701    3-4    $ 275      Roosevelt    UT    Utah

RVTLT-BQTBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $ 275      Roosevelt    UT    Roosevelt, UT

RVTLT-CJTBJX1

   Active    Dell Inc.    Latitude E6430    4096    2501    3-4    $ 275      Roosevelt    UT    Roosevelt - Berry

RVTLT-FM8TTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Roosevelt    UT    Roosevelt, UT

SAOLT-60DHL12

   Active    Dell Inc.    Latitude E7440    8192    2601    2    $ 400      Lakin    KS    Lakin, KS

SYRLT-690FBW1

   Active    Dell Inc.    Latitude E6430    8192    2601    3-4    $ 275      Lakin    KS    0

SYRLT-DB6XBW1

   Active    Dell Inc.    Latitude E6430    8192    2601    3-4    $ 275      Lakin    KS    Lakin, KS

TAFDT-3BFX842

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $ 400      Taft    CA    Taft, CA

TAFDT-438WM02

   Active    Dell Inc.    OptiPlex 9020    4096    2901    1-2    $ 400      Taft    CA    Taft, CA

TAFDT-4FVQDB2

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $ 400      Taft    CA    SMWSS Asset Team

TAFDT-55CLS22

   Inactive    Dell Inc.    OptiPlex 9020    4096    3301    1-2    $ 400      Bakersfield    CA    0

TAFDT-55DBS22

   Active    Dell Inc.    OptiPlex 9020    4096    3301    1-2    $ 400      Taft    CA    Taft, CA

TAFDT-563CP22

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $ 400      Taft    CA    Taft

TAFDT-563DP22

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $ 400      Taft    CA    Taft

TAFDT-565DP22

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $ 400      Taft    CA    Taft

TAFDT-566FP22

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $ 400      Taft    CA    Taft, CA

TAFDT-567DP22

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $ 400      Taft    CA    Taft

TAFDT-567FP22

   Inactive    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $ 400      Taft    CA    Taft

TAFDT-568FP22

   Active    Dell Inc.    OptiPlex 9020    4096    3001    1-2    $ 400      Taft    CA    Taft

TAFDT-5DMLP22

   Active    Dell Inc.    OptiPlex 9020    4096    2901    1-2    $ 400      Taft    CA    Taft

TAFDT-5DMMP22

   Active    Dell Inc.    OptiPlex 9020    4096    2901    1-2    $ 400      Taft    CA    Taft, CA

TAFDT-5DQKP22

   Active    Dell Inc.    OptiPlex 9020    4096    2901    1-2    $ 400      Taft    CA    Taft

TAFDT-6WZ0R22

   Active    Dell Inc.    OptiPlex 9020    4096    3301    1-2    $ 400      Taft    CA    Taft

TAFDT-6XK7R22

   Active    Dell Inc.    OptiPlex 9020    4096    3301    1-2    $ 400      Taft    CA    Taft, CA

TAFDT-77DVJS1

   Active    Dell Inc.    OptiPlex 990    4096    3401    3    $ 175      Taft    CA    Taft

TAFDT-9KM9N22

   Active    Dell Inc.    OptiPlex 9020    4096    2901    1-2    $ 400      Taft    CA    Taft

TAFDT-9KMCN22

   Active    Dell Inc.    OptiPlex 9020    4096    2901    1-2    $ 400      Taft    CA    Taft

TAFDT-9KMWM22

   Active    Dell Inc.    OptiPlex 9020    4096    2901    1-2    $ 400      Taft    CA    Taft

TAFDT-9KNBN22

   Active    Dell Inc.    OptiPlex 9020    4096    2901    1-2    $ 400      Taft    CA    Taft

TAFDT-9KNCN22

   Active    Dell Inc.    OptiPlex 9020    4096    2901    1-2    $ 400      Taft    CA    Taft

TAFDT-9KNWM22

   Active    Dell Inc.    OptiPlex 9020    4096    2901    1-2    $ 400      Taft    CA    0

TAFDT-9KNXM22

   Active    Dell Inc.    OptiPlex 9020    4096    2901    1-2    $ 400      Taft    CA    Taft, CA

TAFDT-9KP9N22

   Active    Dell Inc.    OptiPlex 9020    4096    2901    1-2    $ 400      Taft    CA    Taft

TAFLT-7TQ1P12

   Active    Dell Inc.    Latitude E7440    4096    2601    2    $ 400      Bakersfield    CA    Taft

TAFLT-88HZTZ1

   Active    Dell Inc.    Latitude E6440    4096    2601    3    $ 350      Taft    CA    Taft

TAFLT-8KR1P12

   Active    Dell Inc.    Latitude E7440    4096    2601    2    $ 400      Taft    CA    NMWSS

TAFLT-GVR1P12

   Active    Dell Inc.    Latitude E7440    4096    2601    2    $ 400      Taft    CA    Taft

TAFLT-H2T1P12

   Active    Dell Inc.    Latitude E7440    4096    2601    2    $ 400      Taft    CA    Taft

TAFLT-HXT1P12

   Active    Dell Inc.    Latitude E7440    4096    2601    2    $ 400      Taft    CA    Taft

Inventory

   Inv    Dell    Latitude E6440    4096    2601    3    $ 350      Bakersfield    CA    Bakersfield, CA


Schedule 8

Transferred Hardware

 

Inventory

   Inv    Dell    Latitude E6440    4096    2601    3    $ 350      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Latitude E6440    4096    2601    3    $ 350      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Latitude E6440    4096    2601    3    $ 350      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Latitude E6440    4096    2601    3    $ 350      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Latitude E6440    4096    2601    3    $ 350      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Latitude E6440    4096    2601    3    $ 350      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Latitude E6440    4096    2601    3    $ 350      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Latitude E6440    4096    2601    3    $ 350      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Latitude E6440    4096    2601    3    $ 350      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Latitude E6440    4096    2601    3    $ 350      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Latitude E7440    8192    2601    2    $ 400      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Latitude E7440    8192    2601    2    $ 400      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Latitude E7440    8192    2601    2    $ 400      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Latitude E7440    8192    2601    2    $ 400      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Latitude E7440    8192    2601    2    $ 400      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Latitude E7440    8192    2601    2    $ 400      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Latitude E7440    8192    2601    2    $ 400      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Latitude E7440    8192    2601    2    $ 400      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Latitude E7440    8192    2601    2    $ 400      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Latitude E7440    8192    2601    2    $ 400      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Latitude E7440    8192    2601    2    $ 400      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Precision T3600             $ 1,300      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Precision T5610             $ 2,500      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Precision T5610             $ 2,500      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Precision T5610             $ 2,500      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Precision T5610             $ 2,500      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Precision T5610             $ 2,500      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Optiplex 9020    4096    2901    1-2    $ 400      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Optiplex 9021    4096    2901    1-3    $ 401      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Optiplex 9022    4096    2901    1-4    $ 402      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Optiplex 9023    4096    2901    1-5    $ 403      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Optiplex 9024    4096    2901    1-6    $ 404      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Optiplex 9025    4096    2901    1-7    $ 405      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Optiplex 9026    4096    2901    1-8    $ 406      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Optiplex 9027    4096    2901    1-9    $ 407      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Optiplex 9028    4096    2901    1-10    $ 408      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Optiplex 9029    4096    2901    1-11    $ 409      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Optiplex 9030    4096    2901    1-12    $ 410      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA


Schedule 8

Transferred Hardware

 

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Monitors             $ 75      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Docking Station             $ 50      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Docking Station             $ 50      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Docking Station             $ 50      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Docking Station             $ 50      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Docking Station             $ 50      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Docking Station             $ 50      Bakersfield    CA    Bakersfield, CA

Inventory

   Inv    Dell    Docking Station             $ 50      Bakersfield    CA    Bakersfield, CA


Schedule 9

PLUGGING AND ABANDONMENT

[SCHEDULE FOLLOWS]

Schedule 9, Page 1


Schedule 9

PLUGGING AND ABANDONMENT

California

 

Common Well Name

  

API Number

21Z G-21    030-49706
21Z SP-2    029-37658
BB&O 49    029-45264
BB&O 60    029-46521
Berry & Ewing 301    030-01264
Berry & Ewing 149    029-46196
Berry & Ewing 157R    030-10384
Berry & Ewing 158    029-47984
Big Ten 101    029-52604
Big Ten 106    029-53402
Catfish 29    029-45510
Catfish 52    029-49765
Ethel D 376    029-09397
Ethel D 4-1    030-31203
Fairfield 348    030-02959
Fairfield 41    029-47666
Fairfield 48    029-53733
Fairfield 48-62    030-49706
Fairfield 56-69    030-49873
Fairfield 57-68    030-49874
Fairfield 57-70    030-49875
Fairfield 58-65    030-49876
Fairfield 58-67    030-49877
Fairfield 58-69    030-49950
Fairfield 59-68    030-49955
Fairfield 60    029-57803
Fairfield 60-65    030-49879
Fairfield 60-67    030-49954
Fairfield 60-69    030-49951
Fairfield 61-68    030-49953
Fairfield 62-67    030-49956
Fairfield 67    029-58418
Fairfield 92    029-66613
Fairfield A-113    029-70042
Fairfield A-117    029-71869
Fairfield A-128    029-73087
Fairfield A-141    029-75196
Fairfield A-142    029-75197
Fairfield A-143    029-75198
Fairfield A-146    029-75200
Fairfield A-147    029-75201
Fairfield A-153    029-75207
Fairfield A-155    029-75128
Hillside 101    029-51591


Schedule 9

PLUGGING AND ABANDONMENT

California

 

Common Well Name

  

API Number

Hillside 113    029-51593
Hillside 116    029-51538
Hillside 123    029-48992
Hillside 131    029-51539
Hillside 173    029-86023
Hillside 33    029-37521
Hillside 36    029-37524
Hillside 50    029-45263
Hillside 55    029-48040
Hillside 62    029-478043
Hillside 64    029-48987
Hillside 67    029-51233
Hillside 70    029-48047
Hillside 75    029-51236
Hillside 76    029-48048
Hillside 77    029-48988
Hillside 80    029-47735
Hillside 87    029-47642
Hillside 88    029-48990
Pan 10    029-15460
Pan 20    029-57791
Pan 34    030-26322
Pan 8    029-15458
Section 31D 1-i    030-09322
Section 36 20    030-03319
Southwestern 54-48    030-41723
Surprise 11    029-36304
Surprise 15    029-36308
Surprise 23    029-43032
Surprise 40    029-48146
Surprise 41    029-50542
Surprise 60    029-48639
Surprise 61    029-60208
Surprise 87    029-51211
Surprise 96    029-51544
Tannehill 149    029-87418
USL 12-1 flowline removal    029-19936


Schedule 9

PLUGGING AND ABANDONMENT

Kansas

 

State

  

County

  

Well Name

  

API

  

ACQ

  

Operator

  

Total

WI
(Linn+Berry)

  

Total NRI
(Linn+
Berry)

KS    Grant    TATE Moore 09 002    15-067-20255    XTO    Linn    1.0000    0.8749
KS    Stevens    LEFFLER UNIT 3    15-189-21151    XTO    Linn    1.0000    0.9063
KS    Stevens    PARKER ESTATE 2    15-189-00572    XTO    Linn    1.0000   
KS    Finney    LAYMAN 03 UNIT 25 002    15-055-21308    XTO    Linn    1.0000    0.9028
KS    Kearny    TATE-UNREIN UNIT 3    15-093-21205    XTO    Linn    1.0000    1.0000
KS    Morton    TILLETT LM 21 001    15-129-20239    XTO    Linn    1.0000    0.8750
OK    Texas    Langston 1-2    35-139-22009    XTO    Linn    1.0000    0.8750
KS    Kearny    LEE 11 UNIT 30 002    15-093-20292    XTO    Linn    1.0000    0.8142
KS    Kearny    RODERICK 03 UNIT 26 002    15-093-20305    XTO    Linn    1.0000    0.8750
KS    Stevens    SHERWOOD WINTER 1    15-189-20506    XTO    Linn    1.0000*    0.8750*
KS    Haskell    BURGMEIER 35 001    15-081-00400    XTO    Linn    1.0000    0.6563
KS    Kearny    TATE 08 UNIT 23 002    15-093-20216    XTO    Linn    1.0000    0.8776
KS    Finney    BROWN 07 UNIT 35 008    15-055-20642    XTO    Linn    1.0000    0.8750
KS    Stevens    SHULER HE 16 004    15-189-20985    XTO    Linn    1.0000    0.8750
KS    Stevens    PIPER 01 UNIT 02 002    15-189-20588    XTO    Linn    1.0000    0.8750
OK    Texas    E. CARPENTER UNIT 3    35-139-22110    XTO    Linn    1.0000*    0.8750*
KS    Grant    WILLIAMS 02 UNIT 19 003    15-067-20179    XTO    Linn    1.0000    0.8750
KS    Stevens    RAPP GRIGSBY 21 002    15-189-20347    XTO    Linn    1.0000    0.9219
KS    Kearny    LEE 6-2    15-093-20220    XTO    Linn    1.0000    0.8203
KS    Finney    BROWN UNIT 6-7    15-055-20486    XTO    Linn    1.0000    0.8750
OK    Texas    SWENSON UNIT 2-30    35-139-24183    XTO    Linn    1.0000    0.8750
KS    Stevens    RAYDURE 1-2    15-189-20438    XTO    Linn    1.0000    0.8750
KS    Kearny    WILKIE 1-2    15-093-20059    XTO    Linn    1.0000    0.8750
KS    Grant    Mickey J 33 002    15-067-20534    XTO    Linn    1.0000    0.8750
KS    Kearny    TATE WHITE 27 002    15-093-20716    XTO    Linn    1.0000   
KS    Kearny    BUCK 1 I - 15    15-093-21584    XTO    Linn    1.0000   
KS    Stevens    PHILLIPS RS 10 005    15-189-20338    XTO    Linn    1.0000   
KS    Stevens    SIEGMUND 1-2    15-189-20585    XTO    Linn    0.7500   
KS    Grant    GUY FAIRCHILD 36 003    15-067-20622    XTO    Linn    1.0000   
KS    Finney    J. LIGHTNER I 1    15-055-20882    XTO    Linn    1.0000   
KS    Stevens    FOSTER 1-2    15-189-20771    XTO    Linn    1.0000   
KS    Stevens    ELLIS 1-2    15-189-20666    XTO    Linn    1.0000   
KS    Kearny   

Nightengale 1-26

(White Heirs Unit 3)

   15-093-21804    XTO    Linn    0.0000*    0.0000*
KS    Stevens    O DEA JAMES - A 2    15-189-21034    XTO    Linn    0.0000*    0.0000*
KS    Haskell    DOERKSEN UNIT 4-14 (Stonestreet 14-1 )    15-081-21866    XTO    Linn    0.0000*    0.0000*
KS    Morton    LOIS 9-1 (AO MANGLES 3-9)    15-129-21781    XTO    Linn    0.0000*    0.0000*


Schedule 9

PLUGGING AND ABANDONMENT

Utah

 

Well Name

   API Number     

State

  

County

   WI    NRI   

Well Classification

SCOFIELD THORPE 22-41X      43007308900000      UT    CARBON    1.00000000    0.84577500    PA Proposed to State
SCOFIELD THORPE 23-31      43007310010000      UT    CARBON    1.00000000    0.84577500    PA Proposed to State
SCOFIELD THORPE 35-13      43007309910000      UT    CARBON    1.00000000    0.84577500    PA Proposed to State
SFW FEE 13-10D-54      43013508920000      UT    DUCHESNE    0.99805695    0.63734453    PA Proposed to State
TAYLOR FEE 7-14-56      43013331400000      UT    DUCHESNE    0.56250000    0.49218750    PA Proposed to State
UTE TRIBAL 10-14-55      43013326010000      UT    DUCHESNE    1.00000000    0.82000000    PA Proposed to State
UTE TRIBAL 12-15-55      43013329810000      UT    DUCHESNE    1.00000000    0.82000000    PA Proposed to State
UTE TRIBAL 1-33      43013321850000      UT    DUCHESNE    1.00000000    0.81000000    PA Proposed to State
UTE TRIBAL 15-15-55      43013328550000      UT    DUCHESNE    1.00000000    0.82000000    PA Proposed to State
UTE TRIBAL 7-14-55      43013332690000      UT    DUCHESNE    1.00000000    0.82000000    PA Proposed to State


Schedule 9

PLUGGING AND ABANDONMENT

Colorado, Utah, Texas

 

STATE

  

BUSINESS UNIT

  

WELL NAME

   WELL No.    API   

DESCRIPTION

CO    PICEANCE    NONE         
UT    UINTA    Scofield Thorpe Rig Skid    22-41X    43-007-30890    Gas Well
UT    UINTA    Scofield Thorpe    23-31    43-007-31001    Gas Well
UT    UINTA    Scofield Thorpe    35-13    43-007-30991    Gas Well
UT    UINTA    SWD Fee    13-10D-54    43-013-50892    Oil Well
UT    UINTA    Taylor Fee    7-14-56    43-013-33140    Oil Well
UT    UINTA    Ute Tribal    10-14-55    43-013-32601    Oil Well
UT    UINTA    Ute Tribal    12-15-55    43-013-32981    Oil Well
UT    UINTA    Ute Tribal    1-33    43-013-32185    Oil Well
UT    UINTA    Ute Tribal    15-15-55    43-013-32855    Oil Well
UT    UINTA    Ute Tribal    7-14-55    43-013-33269    Oil Well
TX    TEXLA    NONE         


Schedule 10

CALIFORNIA EMISSIONS CREDITS

NONE

Schedule 10, Page 1


Schedule 11

HUGOTON FIELD OFFICES

[SCHEDULE FOLLOWS]

Schedule 11, Page 1


Schedule 11

HUGOTON FIELD OFFICES

Hickok Field Office & Compressor Station – 9180 East Highway 160, Ulysses, KS 67880 (both are in Grant County, Kansas)

Being a portion of Lot Four (4) and the Southeast Quarter of the Southwest Quarter (SE/4 SW/4), (also described as South half of Southwest Quarter), of Section Thirty-One (31), Township Twenty-Eight (28) South, Range Thirty-Five (35) West of 6th P.M ., containing 64.99 acres of land, more or less, being further described in that certain General Warranty Deed, dated April 18th, 1947, from Clarence E. Reed, a single man to Magnolia Petroleum Company, as recorded in Book 31, Page 187 of the deed records of Grant County, Kansas.

Hugoton Field Office – 200 W 4th Street, Hugoton, KS, 67951

Lots 5-7; of Block 27, to the city of Hugoton, being in Section 16, Township 33 South, Range 37 West, Stevens County, Kansas and being further described in that certain Conveyance, Assignment and Transfer, dated December 28, 1961, from Republic Natural Gas Company to Socony Mobil Oil Company, Inc., as recorded in Book 38, Page 216 of the deed records of Stevens County, Kansas.

Lakin Field Office

 

LAKIN

  

805 South Highway 25

  

Lakin

  

KS

     67860        620-355-7838     

Katherine Lee

A tract of land located in the Southeast Quarter (SE/4) of Section 27, Township 24 South, Range 36 West of the 6th P.M., being further described as follows: Commencing at the SE corner of Section 27, Township 24 South, Range 36 West, thence S 89 ° 22’ 36” W (an assumed bearing) on the South line of the Southside Subdivision for a distance of 954.69 feet to the SW comer of said subdivision; thence S 89 ° 21 • 0711 W on the South line of Section 27 for a distance of 106.26 feet; thence N 00 ° 00’ 00” E for a distance of 55.34 feet to the SE corner of “Tract l II as recorded in Book A, Page 79; thence N 30 ° 09’ 33” E on the Easterly line of said Tract I for a distance of 372.38 feet to the POINT OF BEGINNING; thence N 86° 32’ 08” W for a distance of 147.94 feet to the SE comer of “Tract 2” as recorded in Book A, Page 79; thence N 23 ° 28’ 36” E on the Easterly line of said Tract 2 for a distance of 259.29 feet; thence N 11 ° 36’ 36” Eon the Easterly line of said tract for a distance of 185.67 feet; thence N 00 ° 21’ 14” Eon the Easterly line of said tract for a distance of 121.57 feet; thence N 06 ° 13’ 51” W on the Easterly line of said tract for a distance of 80.00 feet; thence S 77 ° 18’ 32” E for a distance of 345.21 feet to a point on the Westerly right of way line of Highway #25; thence S 30 ° 09’ 33” Won said right of way line for a distance of 640.60 feet to the POINT OF BEGINNING, containing 2.998 acres of land., more or Jess. The basis of bearings being the South line of Section 27, being assumed to be S 89 ° 21’ 23” W. Being the same land conveyed by Corporation Deed dated November I, 2000, from Beymer & Beymer, Inc. to Plains Petroleum Operating Company, as recorded in Book 173, Page 645 of the land records of Kearny County, Kansas and being further described in that certain Deed (with Limited Warranty) dated March 30, 2003, from Williams Production RMT Company to XTO Energy Inc., as recorded in Book 195, Page 68 of the land records of Kearny County, Kansas.

 

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